6. Bonita is considering changing jobs and plans to roll over the vested portion of her qualified retirement plan into either an IRA or the qualified retirement plan of her new employer. Reasons why a direct rollover into the new plan, rather than an IRA, would be more appropriate include which of the following?

1. The new employers plan is the only way Bonita can get a distribution at retirement in the form of a life annuity.
2. The new employers plan contains a provision for loans.
3. There will be no tax penalty if a lump sum benefit is withdrawn from the new plan at early retirement after attaining age fifty.
4. Lump sum withdrawals from the new employers plan after age 59 will be eligible for five- or ten-year forward-averaging.

1. II only c. II and III only
2. I and III only d. II and IV only