Permalink Submitted by mk foss on Mon, 2013-09-23 18:32
A defined benefit plan is designed to pay annuity payments for the retirement of the participant. The future stream of payments can be converted to a lump sum that can be rolled over. The IRS prescribes a formula for the conversion. If this is a one person defined benefit plan, all of the assets can be rolled to an IRA at termination. When the plan terminates a final 5500/5500-EZ must be filed.In any case, you’d need spousal consent to change from a stream of payments with a spouse beneficiary to a lump sum. I’m assuming that you’re talking about a rollover at the termination of employment. It would be difficult to take a distribution and roll it over before termination. The plan would have to allow it and specify under what conditions it could be done.
Permalink Submitted by mk foss on Mon, 2013-09-23 18:32
A defined benefit plan is designed to pay annuity payments for the retirement of the participant. The future stream of payments can be converted to a lump sum that can be rolled over. The IRS prescribes a formula for the conversion. If this is a one person defined benefit plan, all of the assets can be rolled to an IRA at termination. When the plan terminates a final 5500/5500-EZ must be filed.In any case, you’d need spousal consent to change from a stream of payments with a spouse beneficiary to a lump sum. I’m assuming that you’re talking about a rollover at the termination of employment. It would be difficult to take a distribution and roll it over before termination. The plan would have to allow it and specify under what conditions it could be done.