Sec. 457

[Jan]

I have a client that wants to take his Sec.457 out in one lump sum without the mandatory 20% withholding of taxes. Is there any way to do this?

[Bees Knees]

Yes, have it directly transferred to an IRA.

[Jan]

457-ira

thanks Bees-If he driectly transfers to an IRA- does he have to wait any amount of time before he can take the money out of this IRA?

[Bees Knees]

Nope. There is no holding requirement. You can direct transfer it into the IRA to avoid the mandatory withholding. And then take it out of the IRA the next minute. As long as the IRA trustee lets you do that.