485APOS 1 pea7.htm
As filed with the Securities and Exchange Commission on June 25, 2019
1933 Act Registration No. 333-212681
1940 Act Registration No. 811-05721
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-4
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
POST-EFFECTIVE AMENDMENT NO. 7
and
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940
AMENDMENT NO. 506
Lincoln National Variable Annuity Account H
(Exact Name of Registrant)
American Legacy® Advisory
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
(Name of Depositor)
1300 South Clinton Street
Post Office Box 1110
Fort Wayne, Indiana 46801
(Address of Depositor’s Principal Executive Offices)
Depositor’s Telephone Number, Including Area Code: (260) 455-2000
Leon E. Roday, Esquire
The Lincoln National Life Insurance Company
150 North Radnor Chester Road
Radnor, PA 19087
(Name and Address of Agent for Service)
Copy to:
Scott C. Durocher, Esquire
The Lincoln National Life Insurance Company
350 Church Street
Hartford, Connecticut 06103
Approximate Date of Proposed Public Offering: Continuous
It is proposed that this filing will become effective:
/ / immediately upon filing pursuant to paragraph (b) of Rule 485
/ / on ______, pursuant to paragraph (b) of Rule 485
/X/ 60 days after filing pursuant to paragraph (a)(1) of Rule 485
/ / on __________, pursuant to paragraph (a)(1) of Rule 485
Title of Securities being registered:
Interests in a separate account under individual flexible
payment deferred variable annuity contracts.






The Lincoln National Life Insurance Company
Lincoln National Variable Annuity Account H
American Legacy® Advisory

Rate Sheet Prospectus Supplement dated ____, 2019

This Rate Sheet Prospectus Supplement (“Rate Sheet”) outlines the rider charge rates and the Protected Annual Income rates for the Lincoln Wealth PassSM rider.  This supplement is for informational purposes and requires no action on your part. This Rate Sheet must be retained with the current prospectus.
Current Rate Sheets will be included with the prospectus. You can also obtain the most current Rate Sheet by contacting your financial professional, or online at LincolnFinancial.com. This Rate Sheet has been filed with the Securities and Exchange Commission and can be viewed at www.sec.gov.
The rates below apply for applications and/or rider election forms signed on and after ____, 2019 and may be superseded at any time. Contractowners will be notified 10 days in advance of a change to the rates.

Current Initial Charge Rate
Age at Issue 0-65
1.00%
Age at Issue 66-80
1.25%

Protected Annual Income Rate
The Protected Annual Income (“PAI”) rate will be based on the Contractowner’s age on the earlier of the latest date to begin withdrawals to stretch payments over the owner’s life expectancy (i.e., death of the original account owner or contract owner), or the date that the Contract Value reduces to zero. Thereafter, the rate will not change.

Age
PAI Rate
0-54
4.50%
55-58
5.00%
59-69
5.50%
70+
6.00%

In order to receive the rates indicated in this Rate Sheet, your application or rider election form must be signed on and after ______, 2019. We must receive your application or rider election form in Good Order within 10 days from the date you sign your application or rider election form, and the annuity must be funded within 60 calendar days.  Additional paperwork may be required if these conditions are not met and you still wish to purchase the annuity in order to receive the applicable rates in effect at that time. The rates set forth above may be superseded at any time, in our sole discretion. If these rates are superseded, you will be notified at least ten days before those rates become effective.

Subject to the rules above, if the Protected Annual Income rates that we are currently offering on the day the contract and/or rider is issued are higher than the rates we were offering on the date you signed your application or rider election form, you will receive the higher set of rates.  If any rates have decreased when we compare the Protected Annual Income rates that we are offering on the day you signed your application or rider election form to the set of rates that we are offering on the day your contract and/ or rider is issued, your contract / rider will be issued with the set of rates that were in effect on the day you signed your application or rider election form, subject to meeting the rules above.







THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
Lincoln National Variable Annuity Account H

American Legacy® Advisory

Supplement dated _____, 2019 to the prospectus dated May 1, 2019

This supplement to the prospectus for your individual variable annuity contract describes Lincoln Wealth PassSM, available for purchase beginning September 16, 2019. This supplement is for informational purposes and requires no action on your part unless you wish to elect Lincoln Wealth PassSM.

OVERVIEW

Lincoln Wealth PassSM is an optional rider that is designed for non-spouse beneficiaries who are entitled to the death benefit proceeds from an annuity contract or qualified plan. Beneficiaries have the flexibility to spread death benefit payments over a life expectancy period, while keeping money in a tax-deferred contract for continued growth. Withdrawals are age-based and are equal to a percentage of the Protected Amount.

The rider may be added only to the following contracts:
1)
new contracts purchased by a beneficiary of death benefit proceeds from another nonqualified or qualified (IRA and Roth IRA) contract or a qualified retirement plan. The beneficiary must be the Contractowner and Annuitant unless the beneficiary is a trust; or
2)
an existing Lincoln individual variable annuity contract with a single beneficiary who chooses to continue the contract as the Contractowner. The rider must be purchased prior to the date required to begin distributions.

If a new contract is purchased, the rider must be elected at issue, and it will be effective on the contract’s effective date. If the rider is elected after the contract is issued, it will be effective on the next Valuation Date following approval by us. The initial Purchase Payment or Contract Value (if purchased after the contract is issued) must be at least $25,000.

Lincoln Wealth PassSM is available for purchase with nonqualified and qualified (IRAs and Roth IRAs) annuity contracts. The Contractowner/Annuitant must be under the age of 81 at the time the rider is elected.

DESCRIPTION OF CHANGES

The following discussion describes changes that are incorporated into the specified sections of your prospectus.

Special Terms – The following terms are added to the Special Terms section:

Protected Amount – The value used to calculate your Protected Annual Income, as adjusted by additional Purchase Payments and all Withdrawals.

Protected Annual Income – The guaranteed periodic withdrawal amount available from the contract each year under the Lincoln Wealth PassSM rider.

Expense TablesThe following entry is added to Expense Table A under Optional Living Benefit Rider Charges:

Lincoln WealthPassSM *
 
Guaranteed Maximum Annual Charge
 
Age at Issue 0-65 ………………………………………..……………...
2.25%
Age at Issue 66-80 ………………………………………………………
2.25%
* As an annualized percentage of the rider charge base, as increased by subsequent Purchase Payments and decreased by Excess Withdrawals This charge is deducted from the Contract Value on a quarterly basis. The current rider charge rate will be less than or equal to the stated maximum charge rate and will be disclosed in a Rate Sheet prospectus supplement. See Charges and Other Deductions – Rider Charges for more information.

Charges and Other Deductions The following information is added to the Charges and Other Deductions section of your prospectus.

Lincoln Wealth PassSM Charge. If you elect Lincoln Wealth PassSM, you will pay a charge for the rider for as long as the rider is in effect. The charge rate is based on the age of the covered life on the rider effective date, multiplied by the rider charge base, which is equal to the initial Protected Amount, as increased for subsequent Purchase Payments and decreased for Excess Withdrawals.

The rider charge rates for new rider elections are disclosed in a Rate Sheet prospectus supplement. The Rate Sheet indicates the current rider charge rates and the date by which your application or rider election form must be signed and dated for a rider to be issued with those charge rates. The charge rates may be superseded at any time in our sole discretion and may be higher or lower than the charge rates on the previous Rate Sheet.

Any change to the rider charge rate will be disclosed in a new rate sheet at least ten days before that rate becomes effective. In order to get the charge rate indicated in a Rate Sheet, your application or rider election form must be signed and dated on or after the date noted in that Rate Sheet. Current Rate Sheets will be included with the prospectus. You can also obtain the most current Rate Sheet by contacting your registered representative, online at www.LincolnFinancial.com or by calling us at number listed in your prospectus.
The charge will be deducted from the Contract Value on a quarterly basis. The first deduction of the charge will occur on the Valuation Date on or next following the three-month anniversary of the rider’s effective date. This deduction will be made in proportion to the value in each Subaccount and the fixed account, if any, on the Valuation Date the rider charge is assessed. The amount we deduct will increase or decrease as the rider charge base increases or decreases.

The rider charge rate may increase annually on the Benefit Year anniversary at Lincoln’s sole discretion, up to the stated guaranteed maximum charge rate. The first increase to the charge rate will not occur before 5 years from the rider effective date.

The charge will be discontinued upon termination of the rider. However, a portion of the rider charge, based on the number of days the rider was in effect that quarter, will be deducted upon termination of the rider (except for death), surrender of the contract, or the election of an Annuity Payout option, including i4LIFE® Advantage. If the Contract Value is reduced to zero, no further charge will be deducted.

The Contracts – Investment Requirements. The following section is added to the Investment Requirements section of your prospectus and outlines the Investment Requirements that apply to purchasers of Lincoln Wealth PassSM.

Under the current Investment Requirements for your rider, you must allocate your Contract Value as follows:

Group 1
Investments must be at least 20% of Contract Value
 
American Funds Bond Fund
American Funds U.S. Government/AAA Rated Securities Fund
American Funds Mortgage Fund
LVIP American Preservation Fund
Group 2
Investments cannot exceed 80% of Contract Value
American Funds Asset Allocation Fund
American Funds International Growth and Income Fund
American Funds Blue Chip Income and Growth Fund
American Funds Managed Risk Asset Allocation Fund
American Funds Capital Income Builder®
American Funds Managed Risk Global Allocation PortfolioSM
American Funds Global Balanced Fund
American Funds Managed Risk Growth and Income PortfolioSM
American Funds Global Growth and Income Fund
American Funds Managed Risk Growth PortfolioSM
American Funds Global Growth Fund
American Funds Ultra-Short Bond Fund
American Funds Global Growth PortfolioSM
LVIP American Balanced Allocation Fund
American Funds Growth and Income PortfolioSM
LVIP American Global Balanced Allocation Managed Risk Fund
American Funds Growth Fund
LVIP American Global Growth Allocation Managed Risk Fund
American Funds Growth-Income Fund
LVIP American Growth Allocation Fund
American Funds High-Income Bond Fund
LVIP American Income Allocation Fund
American Funds International Fund
 

The fixed account is only available for dollar cost averaging.

As an alternative to satisfy these Investment Requirements, you may allocate 100% of your Contract Value among the Subaccounts listed below. If you allocate less than 100% of Contract Value among these Subaccounts, then the Subaccounts listed below that are also listed in Group 1 will be subject to Group 1 restrictions.  Any remaining Subaccounts listed below that are not listed in Group 1 will fall into Group 2 and will be subject to Group 2 restrictions.

American Funds Asset Allocation Fund
American Funds Mortgage Fund
American Funds Bond Fund
American Funds U.S. Government/AAA Rated Securities Fund
American Funds Global Balanced Fund
LVIP American Balanced Allocation Fund
American Funds Growth and Income PortfolioSM
LVIP American Global Balanced Allocation Managed Risk Fund
American Funds Managed Risk Asset Allocation Fund
LVIP American Global Growth Allocation Managed Risk Fund
American Funds Managed Risk Global Allocation PortfolioSM
LVIP American Growth Allocation Fund
American Funds Managed Risk Growth and Income PortfolioSM
LVIP American Income Allocation Fund
American Funds Managed Risk Growth PortfolioSM
LVIP American Preservation Fund

Additionally, Contract Value may be allocated in accordance with certain asset allocation models made available to you by your broker-dealer. Currently, 100% of the Contract Value can be allocated to the American Funds Balanced Model Portfolio or American Funds Conservative Model Portfolio. You may reallocate Contract Value or Account Value at any time, according to the Investment Requirements listed above. If you terminate an asset allocation model, you must follow the Investment Requirements applicable to your rider. We may exclude an asset allocation model from being available for investment at any time, in our sole discretion. You will be notified prior to the date of such a change.
Living Benefit Riders – Lincoln Wealth PassSM. The following section is added to the Living Benefit Riders section of your prospectus.

Lincoln Wealth PassSM is a Living Benefit Rider available for purchase beginning September 16, 2019, that provides guaranteed periodic withdrawals from the Protected Amount. As long as there is a Protected Amount, you will be able to make annual withdrawals equal to the greater of (a) or (b), where:

(a)
is an amount less than or equal to the Protected Annual Income; or
(b)
is an amount from a qualified or nonqualified contract that is the result of systematic installments withdrawn via an automatic withdrawal service of the amount needed to satisfy the required minimum distribution (RMD) or life expectancy payment rules for the Contract Value of the contract to which this rider is attached.

Please note any withdrawals that exceed the greater of (a) or (b) or amounts that are payable to any assignee or assignee’s bank account are considered Excess Withdrawals. Excess Withdrawals may significantly reduce your Protected Amount as well as your Protected Annual Income amount by an amount greater than the dollar amount of the Excess Withdrawal. Your rider will terminate if the Protected Amount is reduced to zero.

The Contractowner or Annuitant may not be changed while this rider is in effect, including any sale or assignment of the contract as collateral.

Availability. Lincoln Wealth PassSM may only be added to the following contracts:

1)
new contracts purchased by a beneficiary of death benefit proceeds from another nonqualified or qualified (IRA and Roth IRA) contract or a qualified retirement plan. The beneficiary must be the Contractowner and Annuitant unless the beneficiary is a trust; or
2)
an existing Lincoln individual variable annuity contract with a single beneficiary who chooses to continue the contract as the Contractowner. The rider must be purchased prior to the date required to begin distributions.

If a new contract is purchased, the rider must be elected at issue, and it will be effective on the contract’s effective date. If you are a beneficiary entitled to a death benefit and elect the rider after the contract is issued, it will be effective on the next Valuation Date following approval by us. The initial Purchase Payment or Contract Value (if purchased after the contract is issued) must be at least $25,000. If your Contract Value totals $2 million or more, rider elections are subject to Home Office approval.

Lincoln Wealth PassSM is available for purchase with nonqualified and qualified (IRAs and Roth IRAs) annuity contracts. The Contractowner/Annuitant must be under the age of 81 at the time the rider is elected.

To qualify to purchase this rider, the beneficiary must begin or have begun minimum distributions no later than:
1)
one year after the date of death for nonqualified contracts; or
2)
December 31 of the year following the year of death for qualified contracts.

Distributions must be based on the Contractowner’s life expectancy.

Contractowners age 70 or younger must elect the rider no later than 5 years after the death (if distributions have already begun, or within the time frames listed in (1) and (2) above). Contractowners ages 71 through 80 must elect the rider before beginning life expectancy Required Minimum Distributions.

Note: Beneficiaries under the age of majority in your state may not be able to receive proceeds outright. Check your state law to see if a custodian or guardian is needed.

This rider is not available to a beneficiary of an existing contract if the contract was previously annuitized, including i4LIFE® Advantage on nonqualified contracts. A trust beneficiary of a Lincoln contract who chooses to assume ownership of the contract is not eligible to elect this rider, but instead must purchase a new contract to elect it. No other Living Benefit Riders are available if this rider is elected.

We reserve the right to discontinue offering this rider at any time, at our sole discretion, upon advanced written notice to you. This means that there is a chance you may not be able to elect it in the future. We may also make changes to, or discontinue offering, any features for future rider elections at any time at our sole discretion.

Benefit Year. The Benefit Year is the 12-month period starting with the rider effective date and starting with each anniversary of the rider effective date after that. If your Benefit Year anniversary falls on a day that the New York Stock Exchange is closed, any benefit calculations scheduled to occur on that anniversary will occur on the next Valuation Date.

Protected Amount. The Protected Amount is a value used to calculate your Protected Annual Income amount and is the total amount of guaranteed payments you can receive. The Protected Amount is not available to you as a lump sum withdrawal or a Death Benefit. The initial Protected Amount varies based on when you elect the rider. If the rider was elected at the time of application, the Protected Amount is equal to the initial Purchase Payment. If the rider was elected after we issued the contract, the Protected Amount equals the Contract Value on the rider effective date. The maximum Protected Amount is $10 million. This maximum takes into consideration the total guaranteed amounts under the Living Benefit Riders of all Lincoln Life contracts (or contracts issued by our affiliates) in which you are the covered life.

Additional Purchase Payments are allowed only if: 1) the rider is purchased at the time of application, 2) additional Purchase Payments must be received by the earlier of 180 days of the rider effective date or the date required to begin minimum distributions. Additionally, the Purchase Payment must be transferred from a contract that is the same market as the Lincoln annuity, with the same decedent and beneficiary. Additional Purchase Payments are not allowed if the rider is purchased by the beneficiary of an existing Lincoln annuity who chooses to continue the contract as Contractowner.

Additional Purchase Payments automatically increase the Protected Amount by the amount of the Purchase Payment (not to exceed the maximum Protected Amount); for example, a $10,000 additional Purchase Payment will increase the Protected Amount by $10,000. Additional Purchase Payments will not be allowed if the Contract Value is zero.

Certain withdrawals will reduce the Protected Amount on a dollar for dollar basis:
·
withdrawals less than or equal to the Protected Annual Income amount;
·
withdrawals, using Lincoln’s automatic withdrawal service, equal to RMD life expectancy payouts calculated by us for qualified contracts; or
·
withdrawals, using Lincoln’s automatic withdrawal service, equal to RMD life expectancy payouts calculated by us for nonqualified contracts.

All other withdrawals are Excess Withdrawals that reduce the Protected Amount by the same proportion that the withdrawals reduce the Contract Value. This rider will terminate when the Protected Amount is reduced to zero.
Protected Annual Income Withdrawals. The Protected Annual Income is an amount that may be withdrawn from the contract each Benefit Year as long as there is a Protected Amount.

The Protected Annual Income amount is determined by multiplying the Protected Amount by the applicable rate, based on your age on the latest date to begin withdrawals to stretch payments over the owner’s life expectancy (i.e. death of the original account owner or contract owner). The Protected Annual Income amount will change upon additional Purchase Payments and Excess Withdrawals, as described below. Once the Protected Amount is less than the Protected Annual Income, the Protected Annual Income amount will be reduced to the Protected Amount for the final year’s payment.

The initial Protected Annual Income rate will be based on the earlier of the latest date to begin withdrawals to stretch payments over the Contractowner’s life expectancy, or the date that the Contract Value is reduced to zero. Thereafter, the Protected Annual Income rate will not change.

The Protected Annual Income rates applicable to new rider elections are determined in our sole discretion based on current economic factors. Generally, the rates may increase or decrease based on changes in equity market volatility, prevailing interest rates, or as a result of other economic conditions. The rate structure is intended to help us provide the guarantees under the rider. The Protected Annual Income rates for new rider elections may be higher or lower than prior rates, but for existing Contractowners that have elected the rider, your Protected Annual Income rates will not change as a result.

The Protected Annual Income rates applicable to new rider elections are disclosed in a Rate Sheet prospectus supplement. The Rate Sheet indicates the Protected Annual Income rates and the date by which your application or rider election form must be signed and dated for a rider to be issued with those rates. The rates may be superseded at any time and may be higher or lower than the rates on the previous Rate Sheet.

Any changes to the Protected Amount Income rates will be disclosed in a new Rate Sheet at least ten days before those rates become effective. In order to get the rate indicated in a Rate Sheet, your application or rider election form must be signed and dated on or after the date noted in that Rate Sheet. Current Rate Sheets will be included with the prospectus. You can also obtain the most current Rate Sheet information by contacting your registered representative, online at www.LincolnFinancial.com or by calling us at number listed in your prospectus.

You will not be entitled to the Protected Annual Income amount if the Protected Amount is reduced to zero.

Withdrawals equal to or less than the Protected Annual Income amount will reduce the Protected Amount on a dollar for dollar basis. All withdrawals will decrease the Contract Value. If you withdraw less than the Protected Annual Income amount during a Benefit Year, you are not entitled to carry over the unused Protected Annual Income amount to another Benefit Year.

Withdrawals will not be considered Excess Withdrawals (even if they exceed the Protected Annual Income amount) only if the withdrawals are taken as systematic installments of the amount needed to satisfy the required minimum distribution (RMD) rules under Internal Revenue Code Section 401(a)(9) for IRAs or the life expectancy payments for nonqualified contracts. In addition, in order for this exception to apply, the following must occur:


1.
Lincoln’s automatic withdrawal service is used to calculate and pay the RMD or life expectancy payments;

2.
The calculation must be based only on the value in this contract;

3.
No withdrawals other than RMDs or life expectancy payments are made within the Benefit Year (except as described in the next paragraph).

If your RMD or life expectancy payments during a Benefit Year are less than the Protected Annual Income amount, an additional amount up to the Protected Annual Income amount may be withdrawn. If your RMD or life expectancy payment exceeds the Protected Annual Income amount, that excess amount will not be considered an Excess Withdrawal.  However, if a withdrawal other than an RMD or life expectancy payment is made during the Benefit Year, then all amounts withdrawn in excess of the Protected Annual Income amount, including amounts attributable to RMDs and life expectancy payments, will be treated as Excess Withdrawals.

The following example shows the calculation of the Protected Annual Income amount and how withdrawals less than or equal to the Protected Annual Income amount impact the Protected Amount and the Contract Value. The example assumes a 5% Protected Annual Income rate and a Contract Value of $200,000 on the rider’s effective date:

Contract Value on the rider’s effective date …………...………….………….………
 
$
200,000
 
Protected Amount on the rider’s effective date …………....…
 
$
200,000
 
Initial Protected Annual Income amount on the rider’s effective date ……….….
 
$
10,000
 
Contract Value six months after rider’s effective date ………………………………
 
$
212,000
 
Protected Amount six months after rider’s effective date …...
 
$
200,000
 
Withdrawal six months after rider’s effective date …………………………………...
 
$
10,000
 
Contract Value after withdrawal ($212,000 - $10,000) ……………………………...
 
$
202,000
 
Protected Amount after withdrawal ($200,000 – $10,000) …………
 
$
190,000
 
Contract Value on first Benefit Year anniversary …………………………………….
 
$
205,000
 
Protected Amount on first Benefit Year anniversary …………
 
$
190,000
 
Protected Annual Income amount on first Benefit Year anniversary ……………
 
$
10,000
 

Purchase Payments added to the contract subsequent to the initial Purchase Payment will increase the Protected Annual Income amount by an amount equal to the applicable Protected Annual Income rate, multiplied by the amount of the subsequent Purchase Payment. For example, assuming a Contractowner has a Protected Annual Income amount of $2,500 (5% of $50,000 Protected Amount), an additional Purchase Payment of $10,000 increases the Protected Annual Income amount that Benefit Year to $3,000 ($2,500 + 5% of $10,000). The Protected Annual Income payment amount will be recalculated immediately after a Purchase Payment is added to the contract.

Excess Withdrawals. Excess Withdrawals are:

1.
the cumulative amounts withdrawn from the contract during the Benefit Year (including the current withdrawal) that exceed the Protected Annual Income amount at the time of the withdrawal unless if taken as outlined above for RMDs and life expectancy payments;

2.
withdrawals that are payable to any assignee or assignee’s bank account.

When an Excess Withdrawal occurs:

1.
the Protected Amount is reduced by the same proportion that the Excess Withdrawal reduces the Contract Value. This means that the reduction in the Protected Amount could be more than the dollar amount of the withdrawal; and

2.
the Protected Annual Income is reduced by the same proportion the Excess Withdrawal reduces the Contract Value.

Your quarterly statements will include the Protected Annual Income amount (as adjusted for Protected Annual Income amount payments in a Benefit Year, Excess Withdrawals and additional Purchase Payments) available to you for the Benefit Year in order for you to determine whether a withdrawal may be an Excess Withdrawal. We encourage you to either consult with your advisor or call us at the number provided in this prospectus if you have any questions about Excess Withdrawals.

The following example assumes a 5% Protected Annual Income rate and demonstrates the impact of an Excess Withdrawal on the Protected Amount, the Protected Annual Income amount, and the Contract Value under Lincoln Wealth PassSM. The example assumes that the Contractowner makes a $12,000 withdrawal which causes an $11,225 reduction in the Protected Amount.

Prior to Excess Withdrawal:
Contract Value = $60,000
Protected Amount = $85,000
Protected Annual Income amount = $4,250

After a $12,000 withdrawal ($4,250 is within the Protected Annual Income amount, $7,750 is the Excess Withdrawal): The Contract Value and Protected Amount are reduced by the amount of the Protected Annual Income amount of $4,250:

Contract Value = $55,750 ($60,000 - $4,250)
Protected Amount = $80,750 ($85,000 - $4,250)

The Contract Value is also reduced by the $7,750 Excess Withdrawal and the Protected Amount is reduced by 13.90134%, the same proportion by which the Excess Withdrawal reduced the Contract Value of $55,750.

Contract Value = $48,000 ($55,750 - $7,750), a 13.90134% reduction
Protected Amount = $69,525 (($85,000-$4,250)*(1-13.90134%))
Protected Annual Income amount = $3,659 ($4,250) x (1 - 13.90134%)

In a declining market, Excess Withdrawals may significantly reduce your Protected Amount and Protected Annual Income amount. This is because the reduction in the benefit may be more than the dollar amount withdrawn from the Contract Value. If the Protected Amount is reduced to zero, the rider will terminate. If the Contract Value is reduced to zero due to an Excess Withdrawal, the rider and contract will terminate.

Distributions from qualified contracts are generally taxed as ordinary income. Distributions from nonqualified contracts that are includable in gross income are also generally taxed as ordinary income See Federal Tax Matters for information on determining what amounts are includable in gross income.

Final Payment. The year that the final payment is made is determined from the chart below based on the owner’s age on the latest date to begin withdrawals to stretch payments over the owner’s life expectancy. This date is one year after the date of death for nonqualified contracts, and December 31 of the calendar year following the calendar year in which the date of death occurred for qualified contracts.

If the contract and rider are still in effect on the Benefit Year anniversary occurring in the final payment year, a final payment will be made that is equal to the greater of the Protected Amount or the Contract Value, and the contract and rider will terminate. The final payment year is determined on the rider effective date and will not change. The final payment year is determined from the chart below and is based on your age. All amounts must be paid out of the contract in this final payment year.



 
Age
Final Payment
Year
 
Age
Final Payment Year
 
Age
Final Payment Year
 
Age
Final Payment Year
0
82
28
55
56
28
84
8
1
81
29
54
57
27
85
7
2
80
30
53
58
27
86
7
3
79
31
52
59
26
87
6
4
78
32
51
60
25
88
6
5
77
33
50
61
24
89
5
6
76
34
49
62
23
90
5
7
75
35
48
63
22
92
5
8
74
36
47
64
21
92
4
9
73
37
46
65
21
93
4
10
72
38
45
66
20
94
4
11
71
39
44
67
19
95
4
12
70
40
43
68
18
96
3
13
69
41
42
69
17
97
3
14
68
42
41
70
17
98
3
15
67
43
40
71
16
99
3
16
66
44
39
72
15
100
2
17
66
45
38
73
14
101
2
18
65
46
37
74
14
102
2
19
64
47
37
75
13
103
2
20
63
48
36
76
12
104
2
21
62
49
35
77
12
105
1
22
61
50
34
78
11
106
1
23
60
51
33
79
10
107
1
24
59
52
32
80
10
108
1
25
58
53
31
81
9
109
1
26
57
54
30
82
9
110
1
27
56
55
29
83
8
111
1

Death Prior to the Annuity Commencement Date. Lincoln Wealth PassSM has no provision for a payout of the Protected Amount upon death of the Contractowner or Annuitant and provides no increase in value to the Death Benefit over and above what the Death Benefit provides in the base contract. All Death Benefit payments must be made in compliance with Internal Revenue Code Sections 72(s) or 401(a)(9) as applicable as amended from time to time.

Upon the death of the Contractowner, if there is Contract Value and a Protected Amount in effect at the time of the death and there is only one beneficiary, the beneficiary may continue the rider to pay out the remaining Protected Amount. We cannot divide the Protected Amount among multiple beneficiaries. No adjustment will be made to the Protected Amount, Protected Annual Income amount, rider charge base, or final GMWB payment year. If the Protected Annual Income amount was not determined prior to death, then the rate will be set according to the deceased Contractowner’s age on the continuation date. Continuation is not available if the Contract Value is reduced to zero prior to the death of the Contractowner.

Termination. After the fifth Benefit Year anniversary, the Contractowner may terminate the rider by notifying us in writing of the request to terminate or by failing to adhere to Investment Requirements. Lincoln Wealth PassSM will automatically terminate:
on the Annuity Commencement Date;
upon death of the Contractowner, unless there is a Protected Amount and a single beneficiary elects to continue the contract and rider;
if the Contractowner or Annuitant is changed including any sale or assignment of the contract or any pledge of the contract as collateral;
on the date the Contractowner is changed pursuant to an enforceable divorce agreement or decree; or
upon surrender or termination of the underlying annuity contract;
on the rider date anniversary occurring in the final GMWB payment year;
when the Protected Amount and the Protected Annual Income amount are reduced to zero; or
when the final payment is made (applicable only to riders purchased by beneficial owners with death benefit proceeds).

The termination will not result in any increase in Contract Value equal to the Protected Amount. Upon effective termination of this rider, the benefit and charges within the rider will terminate.




Please keep this supplement for future reference.




PART A

The prospectus for the American Legacy Advisory variable annuity contract is incorporated herein by reference to Post-Effective Amendment No. 6 (File No. 333-212681) filed on April 18, 2019.


PART B

The Statement of Additional Information for the American Legacy Advisory variable annuity contract is incorporated herein by reference to Post-Effective Amendment No. 6 (File No. 333-212681) filed on April 18, 2019.





Lincoln National Variable Annuity Account H
PART C - OTHER INFORMATION
Item 24. Financial Statements and Exhibits
(a) List of Financial Statements
1. Part A
The Table of Condensed Financial Information is included in Part A of this Registration Statement. (To Be Filed by Amendment)
2. Part B
The following financial statements for the Variable Account are included in Part B of this Registration Statement: (To Be Filed by Amendment)
Statement of Assets and Liabilities - December 31, 2018
Statement of Operations - Year ended December 31, 2018
Statements of Changes in Net Assets - Years ended December 31, 2018 and 2017
Notes to Financial Statements - December 31, 2018
Report of Independent Registered Public Accounting Firm
3. Part B
The following consolidated financial statements for The Lincoln National Life Insurance Company are included in Part B of this Registration Statement: (To Be Filed by Amendment)
Consolidated Balance Sheets - Years ended December 31, 2018 and 2017
Consolidated Statements of Comprehensive Income (Loss) - Years ended December 31, 2018, 2017 and 2016
Consolidated Statements of Stockholder’s Equity - Years ended December 31, 2018, 2017 and 2016
Consolidated Statements of Cash Flows - Years ended December 31, 2018, 2017 and 2016
Notes to Consolidated Financial Statements - December 31, 2018
Report of Independent Registered Public Accounting Firm
(b) List of Exhibits
(1) Resolutions of the Board of Directors of The Lincoln National Life Insurance Company establishing Separate Account H incorporated herein by reference to Post-Effective Amendment No. 9 (File No. 033-27783) filed on December 5, 1996.
(2) None
(3)(a) Form of Broker-Dealer Selling Agreement among The Lincoln National Life Insurance Company, Lincoln Life & Annuity Company of New York and Lincoln Financial Distributors, Inc. incorporated herein by reference to Registration Statement on Form N-4 (File No. 333-222786) filed on January 30, 2018.
(b) Amended and Restated Principal Underwriting Agreement dated May 1, 2007 between The Lincoln National Life Insurance Company and Lincoln Financial Distributors, Inc. incorporated herein by reference to Post-Effective Amendment 24 (File No. 333-61554) filed on December 18, 2007.
(4)(a) Annuity Contract (30070-A 8/03) incorporated herein by reference to Registration Statement on Form N-4 (File No. 333-138190) filed on October 26, 2006.
(b) Guarantee of Principal Death Benefit Rider (ICC16-32148) incorporated herein by reference to Pre-Effective Amendment No. 2 (File No. 333-212680) filed on December 28, 2016.
(c) Highest Anniversary Death Benefit Rider (AR-593) incorporated herein by reference to Registration Statement on Form N-4 (File No. 333-212680) filed on July 26, 2016.
(d) Allocation Amendment (AR503) incorporated herein by reference to Post-Effective Amendment No. 22 (File No. 333-40937) filed on April 19, 2006.
(e) Variable Annuity Payment Option Rider (I4LA-NQ 8/10) incorporated herein by reference to Post-Effective Amendment No. 44 (File No. 333-40937) filed on October 28, 2010.

 

(f) Variable Annuity Payment Option Rider (I4LA-Q 8/10) incorporated herein by reference to Post-Effective Amendment No. 44 (File No. 333-40937) filed on October 28, 2010.
(g) Guaranteed Income Benefit Rider (AR-528 8/10) incorporated herein by reference to Post-Effective Amendment No. 44 (File No. 333-40937) filed on October 28, 2010.
(h) Variable Annuity Living Benefit Rider (LINC 2.0) (AR-566) incorporated herein by reference to Registration Statement on Form N-4 (File No. 333-212680) filed on July 26, 2016.
(i) Variable Annuity Living Benefit Rider (Market Select Adv) (AR591) incorporated herein by reference to Post-Effective Amendment No. 63 (File No. 333-40937) filed on April 12, 2016.
(j) Guaranteed Income Later Rider (4LATER Select Advantage) (AR-547 (3-12)) incorporated herein by reference to Registration Statement on Form N-4 (File No. 333-181612) filed on May 23, 2012.
(k) Variable Annuity Living Benefits Rider (AR-600) (Lincoln Max 6 SelectSM Advantage) incorporated herein by reference to Post-Effective Amendment No. 36 (File No. 333-135039) filed on April 7, 2017.
(l) Variable Annuity Living Benefits Rider (Market Select Advantage/LINC 2.0) (AR-607) incorporated herein by reference to Post-Effective Amendment No. 5 (File No. 333-214143) filed on June 4, 2018.
(m) Guaranteed Income Later Rider (4LATER Select Adv) (AR-547 03/18) incorporated herein by reference to Post-Effective Amendment No. 5 (File No. 333-214143) filed on June 4, 2018.
(n) Variable Annuity Living Benefit Rider (IRA Income Plus – AR-600) incorporated herein by reference to Post-Effective Amendment No. 71 (File No. 333-40937) filed on February 7, 2019.
(o) Variable Annuity Living Benefit Rider (Wealth Pass - AR-623) (Filed herein)
(5) Application (ANF10692AL) incorporated herein by reference to Registration Statement on Form N-4 (File No. 333-212681) filed on July 26, 2016.
(6)(a) Articles of Incorporation of The Lincoln National Life Insurance Company are incorporated herein by reference to Pre-Effective Amendment No. 1 (File No. 333-04999) filed on September 25, 1996.
(b) By-laws of The Lincoln National Life Insurance Company are incorporated herein by reference to Post-Effective Amendment No. 3 on Form N-6 (File No. 333-118478) filed on April 5, 2007.
(7)(a) Automatic Indemnity Reinsurance Agreement Amended and Restated as of October 1, 2009 between The Lincoln National Life Insurance Company and Lincoln National Reinsurance Company (Barbados) Limited incorporated herein by reference to Post-Effective Amendment No. 43 (File No. 033-26032) filed on April 7, 2010.
(i) Amendments to the Automatic Indemnity Reinsurance Agreement between The Lincoln National Life Insurance Company and Lincoln National Reinsurance Company (Barbados) Limited incorporated herein by reference to Post-Effective Amendment No. 28 (File No. 333-138190) filed on November 5, 2013.
(ii) Amendment No. 4 to the Automatic Indemnity Reinsurance Agreement between The Lincoln National Life Insurance Company and Lincoln National Reinsurance Company (Barbados) Limited incorporated herein by reference to Post-Effective Amendment No. 69 (File No. 333-40937) filed on April 11, 2018.
(iii) Amendment No. 5 to the Automatic Indemnity Reinsurance Agreement between The Lincoln National Life Insurance Company and Lincoln National Reinsurance Company (Barbados) Limited incorporated herein by reference to Post-Effective Amendment No. 62 (File No. 033-26032) filed on April 24, 2019.
(iv) Amendment No. 6 to the Automatic Indemnity Reinsurance Agreement between The Lincoln National Life Insurance Company and Lincoln National Reinsurance Company (Barbados) Limited incorporated herein by reference to Post-Effective Amendment No. 62 (File No. 033-26032) filed on April 24, 2019.
(b) Automatic Reinsurance Agreement effective July 1, 2007 between The Lincoln National Life Insurance Company and Swiss Re Life & Health America Inc. incorporated herein by reference to Post-Effective Amendment No. 5 (File No. 333-138190) filed on April 8, 2008.
(i) Amendments to Automatic Reinsurance Agreement effective July 1, 2007 between The Lincoln National Life Insurance Company and Swiss Re Life & Health America Inc. incorporated herein by reference to Post-Effective Amendment No. 40 (File No. 333-40937) filed on April 7, 2010.
(ii) Amendment No. 3 to Automatic Reinsurance Agreement effective July 1, 2007 between The Lincoln National Life Insurance Company and Swiss Re Life & Health America Inc. incorporated herein by reference to Post-Effective Amendment No. 69 (File No. 333-40937) filed on April 11, 2018.
B-2

 

(iii) Amendment No. 4 to Automatic Reinsurance Agreement effective July 1, 2007 between The Lincoln National Life Insurance Company and Swiss Re Life & Health America Inc. incorporated herein by reference to Post-Effective Amendment No. 48 (File No. 333-138190) filed on April 18, 2019.
(c) Fourth Amended and Restated Reinsurance Agreement between The Lincoln National Life Insurance Company and Union Hamilton Reinsurance, LTD incorporated herein by reference to Post-Effective Amendment No. 72 (File No. 333-40937) filed on April 16, 2019.
(8)(a) Accounting and Financial Administration Services Agreement dated January 1, 2019 among State Street Bank and Trust Company, The Lincoln National Life Insurance Company and Lincoln Life & Annuity Company of New York is incorporated herein by reference to Post-Effective Amendment No. 36 on Form N-6 (File No. 333-125790) filed on April 12, 2019.
(b) Fund Participation Agreements among The Lincoln National Life Insurance Company and:
(i) American Funds Insurance Series incorporated herein by reference to Post-Effective Amendment No. 26 on Form N-6 (File No. 333-146507) filed on April 3, 2017.
(ii) Lincoln Variable Insurance Products Trust incorporated herein by reference to Post-Effective Amendment No. 24 on Form N-6 (File No. 333-146507) filed on April 1, 2016.
(c) Rule 22c-2 Agreement between The Lincoln National Life Insurance Company and:
(i) American Funds Insurance Series incorporated herein by reference to Post-Effective Amendment No. 30 (File No. 333-36304) filed on May 29, 2008.
(ii) Lincoln Variable Insurance Products Trust incorporated herein by reference to Post-Effective Amendment No. 30 (File No. 333-36304) filed on May 29, 2008.
(9) Opinion and consent of Scott C. Durocher, Senior Counsel, The Lincoln National Life Insurance Company as to legality of securities being issued incorporated herein by reference to Pre-Effective Amendment No. 2 (File No. 333-212681) filed on December 28, 2016.
(10)(a) Consent of Ernst & Young LLP, Independent Registered Public Accounting Firm (To Be Filed by Amendment).
(b) Power of Attorney - Principal Officers and Directors of The Lincoln National Life Insurance Company incorporated herein by reference to Post-Effective Amendment No. 6 (File No. 333-212681) filed on April 18, 2019.
(11) Not applicable
(12) Not applicable
(13) Organizational Chart of The Lincoln National Insurance Holding Company System incorporated herein by reference to Pre-Effective Amendment No. 1 (File No. 333-222786) filed on May 14, 2018.

Item 25. Directors and Officers of the Depositor
The following list contains the officers and directors of The Lincoln National Life Insurance Company who are engaged directly or indirectly in activities relating to Lincoln National Variable Annuity Account H as well as the contracts. The list also shows The Lincoln National Life Insurance Company's executive officers.
Name   Positions and Offices with Depositor
Ellen G. Cooper*   Executive Vice President, Chief Investment Officer, and Director
Randal J. Freitag*   Executive Vice President, Chief Financial Officer, and Director
Wilford H. Fuller*   Executive Vice President and Director
Christopher A. Giovanni*   Senior Vice President and Treasurer
Dennis R. Glass*   President and Director
Stephen B. Harris*   Senior Vice President and Chief Ethics and Compliance Officer
Christine Janofsky*   Senior Vice President, Chief Accounting Officer, and Controller
Leon E. Roday*   Executive Vice President, General Counsel and Director
Keith J. Ryan**   Vice President and Director
Nancy A. Smith*   Senior Vice President and Secretary
Joseph D. Spada***   Vice President and Chief Compliance Officer for Separate Accounts
B-3

 

*Principal business address is Radnor Financial Center, 150 Radnor Chester Road, Radnor, PA 19087
**Principal business address is 1300 South Clinton Street, Fort Wayne, Indiana 46802
***Principal business address is 350 Church Street, Hartford, Connecticut 06096
Item 26. Persons Controlled by or Under Common Control with the Depositor or Registrant
See Exhibit 13 above: Lincoln National Corporation Organizational Chart.
Item 27. Number of Contractowners
As of May 31, 2019 there were 278,831 contract owners under Account H.
Item 28. Indemnification
a) Brief description of indemnification provisions.
In general, Article VII of the By-Laws of The Lincoln National Life Insurance Company (Lincoln Life or Company) provides that Lincoln Life will indemnify certain persons against expenses, judgments and certain other specified costs incurred by any such person if he/she is made a party or is threatened to be made a party to a suit or proceeding because he/she was a director, officer, or employee of Lincoln Life, as long as he/she acted in good faith and in a manner he/she reasonably believed to be in the best interests of, or act opposed to the best interests of, Lincoln Life. Certain additional conditions apply to indemnification in criminal proceedings.
In particular, separate conditions govern indemnification of directors, officers, and employees of Lincoln Life in connection with suits by, or in the right of, Lincoln Life.
Please refer to Article VII of the By-Laws of Lincoln Life (Exhibit no. 6(b) hereto) for the full text of the indemnification provisions. Indemnification is permitted by, and is subject to the requirements of, Indiana law.
b) Undertaking pursuant to Rule 484 of Regulation C under the Securities Act of 1933:
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 provisions described in Item 28(a) above 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 such 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.
Item 29. Principal Underwriter
(a) Lincoln Financial Distributors, Inc. (“LFD”) currently serves as Principal Underwriter for: Lincoln National Variable Annuity Account C; Lincoln National Flexible Premium Variable Life Account D; Lincoln National Variable Annuity Account E; Lincoln National Flexible Premium Variable Life Account F; Lincoln National Flexible Premium Variable Life Account G; Lincoln National Variable Annuity Account H; Lincoln Life & Annuity Variable Annuity Account H; Lincoln Life Flexible Premium Variable Life Account J; Lincoln Life Flexible Premium Variable Life Account K; Lincoln National Variable Annuity Account L; Lincoln Life & Annuity Variable Annuity Account L; Lincoln Life Flexible Premium Variable Life Account M; Lincoln Life & Annuity Flexible Premium Variable Life Account M; Lincoln Life Variable Annuity Account N; Lincoln New York Account N for Variable Annuities; Lincoln Life Variable Annuity Account Q; Lincoln Life Flexible Premium Variable Life Account R; LLANY Separate Account R for Flexible Premium Variable Life Insurance; Lincoln Life Flexible Premium Variable Life Account S; LLANY Separate Account S for Flexible Premium Variable Life Insurance; Lincoln Life Variable Annuity Account T; Lincoln Life Variable Annuity Account W; and Lincoln Life Flexible Premium Variable Life Account Y and Lincoln Life & Annuity Flexible Premium Variable Life Account Y; Lincoln Life Variable Annuity Account JF-H; Lincoln Life Variable Annuity Account JF-I; Lincoln Life Flexible Premium Variable Life Account JF-A; Lincoln Life Flexible Premium Variable Life Account JF-C; Lincoln Life Variable Annuity Account JL-A; Lincoln Life & Annuity Flexible Premium Variable Life Account JA-B; Lincoln Variable Insurance Products Trust; Lincoln Advisors Trust.
(b) Officers and Directors of Lincoln Financial Distributors, Inc.:
B-4

 

Name   Positions and Offices with Underwriter
Andrew J. Bucklee*   Senior Vice President and Director
Patrick J. Caulfield**   Vice President, Chief Compliance Officer and Senior Counsel
Wilford H. Fuller*   President, Chief Executive Officer and Director
Christopher A. Giovanni*   Senior Vice President and Treasurer
John C. Kennedy*   Senior Vice President, Head of Retirement Solutions Distribution, and Director
Thomas P. O'Neill*   Senior Vice President and Chief Operating Officer
Christopher P. Potochar*   Senior Vice President and Director, Head of Finance and Strategy
Nancy A. Smith*   Senior Vice President and Secretary
*Principal Business address is Radnor Financial Center, 150 Radnor Chester Road, Radnor, PA 19087
**Principal Business address is 350 Church Street, Hartford, CT 06103
(c) N/A
Item 30. Location of Accounts and Records
All accounts, books, and other documents, except accounting records, required to be maintained by Section 31a of the 1940 Act and the Rules promulgated thereunder are maintained by The Lincoln National Life Insurance Company, 1300 South Clinton Street, Fort Wayne, Indiana 46802. The accounting records are maintained by State Street Bank and Trust Company, 801 Pennsylvania Avenue, Kansas City, MO 64105.
Item 31. Management Services
Not Applicable.
Item 32. Undertakings
(a) Registrant undertakes that it will file a post-effective amendment to this registration statement as frequently as necessary to ensure that the audited financial statements in the registration statement are never more than 16 months old for so long as payments under the variable annuity contracts may be accepted.
(b) Registrant undertakes that it will include either (1) as part of any application to purchase a Certificate or an Individual Contract offered by the Prospectus, a space that an applicant can check to request a Statement of Additional Information, or (2) a post card or a similar written communication affixed to or included in the Prospectus that the applicant can remove to send for a Statement of Additional Information.
(c) Registrant undertakes to deliver any Statement of Additional Information and any financial statements required to be made available under this Form promptly upon written or oral request to Lincoln Life at the address or phone number listed in the Prospectus.
(d) The Lincoln National Life Insurance Company hereby represents that the fees and charges deducted under the contract, in the aggregate, are reasonable in relation to the services rendered, the expenses expected to be incurred, and the risks assumed by The Lincoln National Life Insurance Company.
Item 33.
For contracts sold in connection with the Texas Optional Retirement Program, Registrant is relying on Rule 6c-7 and represents that paragraphs (a) through (d) of that rule have been complied with.
SIGNATURES
(a) As required by the Securities Act of 1933 and the Investment Company Act of 1940, the Registrant has caused this Post-Effective Amendment No. 7 to the registration statement to be signed on its behalf, in the City of Hartford, and State of Connecticut on this 25th day of June, 2019.
B-5

 


Lincoln National Variable Annuity Account H (Registrant)
American Legacy® Advisory
  By: /s/ Delson R. Campbell

Delson R. Campbell
Vice President, The Lincoln National Life Insurance Company
(Title)
  THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
(Depositor)
  By: /s/ Stephen R. Turer

Stephen R. Turer
(Signature-Officer of Depositor)
Senior Vice President, The Lincoln National Life Insurance Company
(Title)
(b) As required by the Securities Act of 1933, this Amendment to the registration statement has been signed by the following persons in their capacities indicated on June 25, 2019.
Signature Title
*/s/ Dennis R. Glass

Dennis R. Glass
President and Director (Principal Executive Officer)
*/s/ Ellen Cooper

Ellen Cooper
Executive Vice President, Chief Investment Officer and Director
*/s/ Randal J. Freitag

Randal J. Freitag
Executive Vice President, Chief Financial Officer and Director (Principal Financial Officer)
*/s/ Leon E. Roday

Leon E. Roday
Executive Vice President, General Counsel and Director
*/s/ Wilford H. Fuller

Wilford H. Fuller
Executive Vice President and Director
*/s/ Keith J. Ryan

Keith J. Ryan
Vice President and Director
*By: /s/ Delson R. Campbell

Delson R. Campbell
Pursuant to a Power of Attorney
B-6