In-Kind Distributions with annuity products

[Purplemandinga]

This is probably a dumb question. But how do In-Kind distributions work if the plan is invested in a group annuity? I'm assuming the In-Kind distribution rules do not apply to insurance products but I don't know where I can research this.

[Belgarath]

Probably with the insurance company/agent. If it is a group annuity, they might issue the participant a "certificate" or something. Individual annuity policies can be assigned to the individual. If the participant wants it, possible the company will issue an individual annuity policy as an IRA rollover/transfer instead of distributing cash.

A lot has probably changed since I flushed all this insurance stuff from my memory banks.

[Bird]

I doubt a group annuity can truly be involved in an "in-kind" distribution.  They might have a "deal" for existing participants to roll out to an individual annuity without a sales charge, with the same funds, but it's not truly in-kind.

(Even with direct-held mutual funds, moving the "same" funds from a retirement plan to an IRA is likely not in-kind since it is likely changing share classes from R to A, or whatever.)

[Larry Starr]

In kind distribution is simply not possible with a group annuity contract, by definition.  You could have in kind language (we always avoid it), but that doesn't mean that an actual distribution other than cash is possible.  Of course, if it is an annuity as a normal form, a distribution of an annuity is still not an in kind distribution.