Distribution of annuity upon termination of plan

[chris]

How do you verfiy that an annuity contract complies with the consent requirements, etc of 401(a)(11), 417, and related sections? Is it just a matter of finding the language within the contract? And if no language, get the insurance company to amend it as such????

[david rigby]

My experience with such contracts is limited and indirect, but if the appropriate language is not already included, I would be inclined to look elsewhere. Inclusion of such language seems to be a no-brainer.

[Lorraine Dorsa]

There are a number of companies which specifically market annuities for distributions from terminating plans and I presume their contracts have all the appropriate language.

They send me letters and marketing pieces every so often and often have booths at ASPA and other conferences. Send me an email if you'd like me to see if I can find any of their materials.

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[Bill Berke]

I tell our clients to get a letter from the insurance company -NOT the agent, that the policy complies with all the requirements of the the IRC. The letter is quite detailed in its info request. I think a written affirming response is one of the fiduciary requirement selection requirements. And all the insurance companies who sell annuities to qualified plans have this language if you ask for it to be included.