By Mark Smith and Jamey A. MedlinIn PLR 201048044 (September 9, 2010), the Internal Revenue Service again addressed the application of certain tax rules relating to distributions from defined contribution retirement plans in the form of an annuity.FactsThe ruling considered a proposed target date fund with a guaranteed lifetime withdrawal benefit (GLWB) to be offered as a §401(k) investment option. As described in the ruling, the proposed fund offers the following features:
RulingsBased on these facts, the IRS ruled as follows:
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