Retired Dentist with Profit Sharing Plan (that he administers) wants to invest a portion of the funds assets in annuities and he has been told he can transfer funds from the plan into the annuity and then take annuity payments back into the plan. He has been doing this with CD’s-buying CDs with Plan funds and having interest go back into the plan.

Is this allowable?

Wouldn’t he be better off rolling the funds into an IRA annuity?