A husband and wife are only participants in their 100% owned company DB plan.

They are terminating the plan and each have a lump sum value worht $50,000.

Scenario 1 - say plan is invested in one piece of real estate worth $50,000 and cash in the amount of $50,000.

Can one of the participants receive an in-kind distribution of the real estate? Can the real estate be directly rolled into an IRA account that accepts such an investment?

Scenario 2 - plan owns a piece of real estate worth $100,000 and no other assets.

Can the real estate be rolled into each aprticipant's IRA account where each has 50% ownership of real estate?

The questions above are regarding the legality. Of course the plan will have to provide for the above as well.

Thanks.

#1 Scenario looks fine to me.

#2 Scenario I'm not sure how you accomplish it logistically. If the land were/could be legally sub-divided then that would work (each spouse takes their piece). Perhaps if it (land) were held in an LLC and each spouse took an in-kind distribution/rollover equal to their respective separate interest in the LLC, and the IRA accepts LLC interests, that might work as well. That's all I can think of but maybe others have better ideas.