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A structured settlement is a financial or insurance arrangement whereby a claimant agrees to resolve a personal injury tort claim by receiving periodic payments on an agreed schedule rather than as a lump sum. purchaser of a structured settlement is an individual or company who buys a pre-existing structured settlement. Such settlements might include payouts for lottery winnings or annuities. For example, a court ordered structured settlement pays $5,000 a year for twenty years.
Exception. The only exception in regards to required minimum distributions is when the annuity is part of a traditional qualified retirement plan. Examples of this would be a 412(i) plan, or a traditional IRA which holds an annuity as an investment.These accounts are required to make distributions at age 70 1/2.Even though annuities are exempt from the required distribution, the rules governing qualified retirement plans must be followed in these circumstances.xception. The only exception in regards to required minimum distributions is when the annuity is part of a traditional qualified retirement plan. Examples of this would be a 412(i) plan, or a traditional IRA which holds an annuity as an investment.