Asset reversion #2?

[Guest babs51]

Husband and wife DB plan, both receiving benefits in 100% J & S form since early 90s. Once had a corp, but has since been dissolved. Now reporting as sole proprietor, as with other case, if plan were to terminate and distribute assets or purchase annuities for each, there would be a reversion.

If both were to die (say in a car accident together), again sicne benefits would cease, would all remaining assets become the reversion? Being a sole proprietor - to whom or what?

[Larry M]

The plan would have assets remaining.

The sponsor (or successor sponsor) could have a number of options, among them:

1. take assets back as reversion - and pay whatever taxes are applicable;

2. continue the plan with other, new employees;

3. merge the plan with another plan

[david rigby]

Could the plan purchase an annuity, and could that annuity have a death benefit beyond the J&S (as permitted by the plan)?