Sale of Substantially All the Assets Used in a Trade or Business - Def

[Guest Gibson]

Clienht sold substantially all of the assets used in a trade or business, thus permitting a distribution of account balances attributable to elective deferrals. Plan distribution options limited to lump sum and installments. However, law requires distribution to be a lump sum distribution. Old definition of lump sum included the distribution of an annuity contract. New definition does not include that language. However, I understand that President Clinton is set to sign a bill into law that would be a technical correction to the definition of "lump sum distribution" and add the annuity contract language back in.

Assuming the bill becomes law, does client have to offer annuity contracts to the transferred employees? Client would prefer to offer only lump sums.