Someone wants to wind down a company defined benefit plan that owns life insurance. Since the Life insurance cannot be rolled into an IRA, my understanding is that the life insurance can be purchased out of the pension trust, in accordance with certain IRS valuation guidelines.

Is anyone familiar with the mechanics of that kind of transaction? I know the funds come from outside sources and end up in the trust…is there a 1099 that is issued?

Any thoughts are appreciated.

Thanks.