Guest Alan L Fry Posted November 28, 2001 Posted November 28, 2001 Can a 401 (k) plan purchase and distribute annuities to non-spouse beneficiaries?
KIP KRAUS Posted November 29, 2001 Posted November 29, 2001 Why would you? My guess is that if the plan document doesn't allow it it can't be done. If the beneficiary wants an annuity he/she can buy one.
Guest Alan L Fry Posted December 3, 2001 Posted December 3, 2001 The daughters want to annuitize or stretch out their benefit, and the plan allows for that. The administrator doesn't want to service it for the next 50-60 years. A plan can distribute an annuity to a participant w/o current tax. They want to do the same thing for the benes. Al
KIP KRAUS Posted December 3, 2001 Posted December 3, 2001 If the plan allows for the purchase of an annuity then once the annuity is purchased from an insurer, I presume, then the administrator has nothing else to do. It's my assumption that the libility becomes the insurer's and the plan has discharged its duty to the beneficiaries.
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