Full Version: Closing a Defined Benefit Plan
When closing a Defined Benefit Plan that is fully funded, may the Plan pay out a cash payment in the form of a tax deferred custodian to custodian rollover to an IRA? (like when transferring funds from a 401k to an IRA). The beneficiary does not want an annuity and is age 51.
You are describing a lump sum distribution to a rollover account.
This is done all the time, but the plan document must permit lump sum distributions.
Most small plans under 25 lives have 98% or more of their distributions in this manner.
This is done all the time, but the plan document must permit lump sum distributions.
Most small plans under 25 lives have 98% or more of their distributions in this manner.
98%? Generously low; I've yet to see an annuity contract purchased in 23 years in the small plan market where lump sum is available 
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In 17 years we've seen one - selected $21.05 per month J&50% - ppt age was in low 30's.
May have wanted to avoid getting spousal consent for the lump sum?
May have wanted to avoid getting spousal consent for the lump sum?
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