Guest Roman Posted September 7, 2005 Posted September 7, 2005 Can a DB plan allow a distribution partially as a lump sum and partially as an annuity? For example, say that the normal form is 100% J & S. Can the owner, assuming he hits the dollar limit, choose to receive his benefit 50% as a lump sum and 50% as an annuity? If the answer is yes, can you fund the benefit based on this scenario (provided, of course, that he puts his intent in writing)?
david rigby Posted September 7, 2005 Posted September 7, 2005 I think that optional form is available, with proper spousal consent. Funding for a particular form of payment is part of the actuarial assumptions. I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.
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