PLAN DISTRIBUTION

[Gary]

I was informed that a one participant plan sponsor has a private investment in a REIT.

The owner/participant terminated plan and wants to receive distribution in-kind so as not to sell investment at a low price.

He is being todl that since it is a private investment it must be liquidated.

Anyone know that to be accurate statement?

Thanks.

[SoCalActuary]

First, the plan document must allow in-kind distributions.

Second, you must create a market value for this asset, so you know what to put on the 1099R.

[Guest Dressageho]

Third, you would have to be allowed to re-title the asset. Some assets are non-transferrable.