Fixed Annuity Matures 1099R Issued to 401k Plan

Client has a pooled trustee directed 401k trust.  Trustee has a 5 year fixed annuity held in the plan showing the Trustee as the annuitant and the 401k plan as the beneficiary.  Annuity has matured and funds were distributed to the plan in 2020.  Client received a 1099R reflecting this as a distribution with the Plan as the Taxpayer and code 1 as the distribution code.  This doesn't seem right to me but this is about the only annuity I have held in a plan so wanted to be sure I'm not leading the client astray.  Should a 1099R have been issued in this case?  I would say not because it was distributed from the plan to the plan.

So it was simply an internal investment of the 401(k) plan? It sounds like it may have been set up incorrectly somehow if a 1099-R is being generated.

Its semantics but it appears based on the information you provided that this is a "transfer" within the plan assets and not a "distribution" of plan assets.  Therefore no 1099-R should have been generated. 

That being said, I had a client some years ago with a similar situation and the 1099-R reflected the name of the Plan.  The broker and client tried to get the investment firm to fix it but they refused.  There was never any fallout or followup by the IRS in our case.    

The question is "who is (was) the owner?"  Obviously it should have been the plan but it sounds like it was set up incorrectly in the name of the individual.  Or...I've never seen an annuity actually "mature" (they always just continue until surrendered).  I suppose if the individual was the annuitant and it was paid or supposed to be paid to the annuitant it would be "proper" to issue a 1099-R to that individual.  I'm very surprised the insurance company prepared a 1099-R showing the plan as the taxpayer.  The whole thing sounds weird to me; probably set up wrong from the get-go.