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Can someone clearify Section 72(d) for me?

Specifically, I have an employee in a db plan with pvab of 200,000 and after tax employee contributions of 50,000 (interest not included). Plan does not allow lump sums. Do I have to offer the after tax contributions as separate annuity forms? or just have 50,000/200,000 (annuity form) be tax free?

Thank you,

Andrew

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