DB plan distributions to active employees

[Übernerd]

Code Section 401(a)(20) permits a terminating defined benefit plan to distribute benefits to active employees "within one year" of the termination date. If the assets aren't distributed within a year, the plan isn't considered "terminated."

If all trust assets are distributed (within a year) through the purchase of a deferred annuity contract, can that annuity contract retain the in-service distribution option, so that active employees can receive distributions beyond the one-year period? I can't find any guidance on this question.

Cheers.