NQ Trust Fund Beneficiary 10% Penalty Pre-59.5 Questions ?

Hello,

I don't run into this situation, so thought I would ask the experts here.

All plan assets are commingled in a single fixed income investment portfolio managed by Nationwide. At first I thought it was an annuity, but found out it is not although it can be 1035 exchanged to an annuity.

The beneficiary of the non-qualified trust fund has 3 options. Lifetime payout, 5 year payout or keep the account as an owner.


If they keep the account as the owner:

1. Will they be subject to the 10% pre-59.5 excise penalty on withdrawals ? (they are under 59.5)

The home o
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