Can commuted value of annuity be an eligible rollover distribution

[Guest kprhok]

I am having trouble interpreting the meaning of the following language of treasury reg 1.402©-2 Question/Answers 5 and 6 regarding rollover eligibility of payments invoving annuitized qualified accounts. I am trying to determine if a surviving spouse can roll the commuted value of an annuity into an inherited IRA after his/her spouse dies - and whether the decision depends on whether the decedent had already annuitized the account prior to death and had begun receiving substantially equal periodic payments..

Link to the 1.402©

Answer 5 states, in part.......

© Changes in the amount of payments or the distributee. If the amount (or, if applicable, the method of calculating the amount) of the payments changes so that subsequent payments are not substantially equal to prior payments, a new determination must be made as to whether the remaining payments are a series of substantially equal periodic payments over a period specified in Q&A–3(b)(1) of this section. This determination is made without taking into account payments made or the years of payment that elapsed prior to the change. However, a new determination is not made merely because, upon the death of the employee, the spouse or former spouse of the employee becomes the distributee. Thus, once distributions commence over a period that is at least as long as either the first annuitant's life or 10 years (e.g., as provided by a life annuity with a five-year or ten-year-certain guarantee), then substantially equal payments to the survivor are not eligible rollover distributions even though the payment period remaining after the death of the employee is or may be less than the period described in section 402©(4)(A). For example, substantially equal periodic payments made under a life annuity with a five-year term certain would not be an eligible rollover distribution even when paid after the death of the employee with three years remaining under the term certain.

Feedback is very much appreciated..