While answering this, I presume, you have your spouse as your prime beneficiary and you would like to stretch your IRA to your children. If your spouse is the beneficiary, she can roll the money from your 401(k) to her own IRA. This can be further stretched to different IRAs which each child as its beneficiary.
NOW, if your children and not your spouse are currently beneficiaries of your IRA, they may or may not be able to stretch it. The tax laws allow for beneficiaries to stretch out distributions, but most company retirement plans do not permit it. The reason is simple--the stretch can take place over decades. If the company allowed that, then they would be responsible for all the administration. There isn't any benefit to the company to do so while it exposes them to potential liability. Instead, most company plans will cash out the beneficiaries at the death of the employee. At best, XXXXX XXXXX may be able to stretch it out over 5 years.
To sum up, you will need to find out if your company allows it. You will also need to ensure that this does not get complicated for other people to handle. Also, 5% receiving from Annuities is pretty good and you should consider that.
I hope this helps.. Never hesitate to get back for further clarifications / help.