A few questions as while I have a grasp of this there is some muddy water in play! I am dealing with siblings as beneficiaries on a NQ Annuity and that is the basis from where this should be answered.

Question 1) Can a person opt for the 5 year option and
a. not take any distributions until the end of the 5 years and then all gains are taxable?
b. change their mind from the 5 year option and then elect the stretch?

Question 2) If a Stretch is elected, Is there a set dead line / time frame when a person has to take the first NQ-
RMD?

Question 3) There are actually “3” NQ contracts I am dealing with. Please Confirm that “each” contract has to
have a distribution and that they cannot be combined as in a true IRA?

Question 4) Final Question, if my client, who is a sister, elects the stretch option, and takes distributions for say,
well any amount of years 1- 8?? And she names her husband as beneficiary, at the time of her death.
a. can he continue the stretch mechanism in place or is he force to cash out?
b. if he can continue the stretch, can he then name his daughter to continue until the account is
paid out?
c. I guess the real question is “does this go on in perpetuity with bene’s until the account zero’d
out?”