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    457(b)

    Woman, 47 years old, quits job after 20 years. Has been a long time subscriber to a 457(b) plan.

    They are telling her that since she quit, she can no longer continue in the 457(b). She apparently can take it ALL out now (and be taxed on it), or spread the distribution over 5 years (all taxable).

    Is this correct? Somewhere I've been told they cannot stop someone from rolling over the portion that they contributed. Over 20 years, I suspect the earnings are more than the employee investment, but I'm wondering what rights she has.

    I've known investment custodians to give wrong answers before.

    #2
    But the most significant restriction of all is that if you are still working for a governmental agency that provides you with a 457 (b) plan, you cannot perform a rollover into an IRA. So, transfers from 457 accounts are best done after retirement.

    This is what I found with limited research. So, it looks like your client (retired) can do a rollover. Many questions still exist, are they still referring to an IRA?

    https://pocketsense.com/do-transfer-...a-6886529.html

    Here is the source.
    Last edited by BOB W; 01-13-2022, 06:02 PM.
    This post is for discussion purposes only and should be verified with other sources before actual use.

    Many times I post additional info on the post, Click on "message board" for updated content.

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      #3
      My take is that once you quit or retire you can roll that baby over.

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        #4
        She can rollover a government 457 plan to an IRA, but not a Tax-exempt employer that isn’t a state or local government (or political subdivision, instrumentality, agency).Scroll down to the bottom of this link:
        https://www.irs.gov/retirement-plans...tal-457b-plans

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