David Posted December 9, 1999 Posted December 9, 1999 Is a terminating plan required to offer an immediate annuity to a participant with a pvab greater than $5,000 who is, for ex., 30 years old? NRA is 65 and ERA is 55/10YOS.
Wessex Posted December 9, 1999 Posted December 9, 1999 Yes, if the plan provides a single sum payment option. If a single sum payment is not an option, the annuity does not have to commence until the participant has met the applicable requirements for early or normal retirement.
david rigby Posted December 9, 1999 Posted December 9, 1999 What kind of plan are we discussing? I think I know what you mean, but let's be sure. 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.
KJohnson Posted December 9, 1999 Posted December 9, 1999 Generally, if your plan has an annuity option, you must offer this option to all participants with accounts over $5,000 upon plan termination. 1.411(d)(iv) provides that you can only "strip" other distribution options upon termination if there is no annuity option.
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