Annuity purchase to pay non spousal beneficiaries

[Dan]

A bank client's owner died. He left a large account balance. His beneficiaries are non-spousal. The beneficiaries are younger and wish to be paid on a life expectancy basis. The plan allows investment in insurance products, so is there any reason why an annuity couldn't be purchased as a mechanism for the plan to make these payments?

Thanks,

Dan

[mbozek]

The terms of the plan control the distribution options which are available to a beneficiary. The Plan admin must give the bene a statement of the distribuon options which are available.