Non qualified annuity beneficiary
Apparently the beneficiary (nonspouse) of a nonqualified variable annuity has limited choices regarding his distribution. (a)lump sum (b) 5 year and (c) annuitized payout. Also there is a 60 day limit (from date of death?) to choose (c). My question is, in what IRS publication is this explained? I don’t see it in pub 575 (Pensions & Annuities), which is where I expected it.
Permalink Submitted by mk foss on Wed, 2011-04-20 22:24
The options available to an annuity beneficiary are spelled out in the annuity contract. The federal law has guidelines (life expectancy, five year rule) but the individual annuity providers generally use more restrictive options for a nonspouse beneficiary.