457 Rollover while still at job

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Joined: Sat Sep 01, 2012 6:05 pm

457 Rollover while still at job

Post by priuspilot » Sat Sep 01, 2012 6:11 pm

Here's my situation:

My employer offers both 457(b) and 403(b) options Good!

These options are ONLY available through a variable annuity which charges 1% on top of the fees of the mutual funds BAD

Here's my question: Am I able to rollover some of my 457(b) funds into an IRA of my choosing if I have not yet left my employer?

Alan S.
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Location: Prescott, AZ

Re: 457 Rollover while still at job

Post by Alan S. » Sat Sep 01, 2012 7:02 pm

457b in service distribution rules are different than from your 403b. This is the best description I could locate explaining the allowed distributions:

http://www.legendgroup.com/Retirement-A ... tions.aspx

That said, ask your plan to be sure, but expect to receive a response concurring with the link.

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Re: 457 Rollover while still at job

Post by Mudpuppy » Sat Sep 01, 2012 7:17 pm

For most 457b plans, the answer is going to be no. Non-governmental 457b plans only allow rollovers to another non-governmental 457b plan. Governmental traditional 457b plans only allow in-service distributions for financial hardships or if the balance is less than $5000 (some employers have a lower limit like $2000) and you haven't contributed in 24 months. The only area I can't answer for you is governmental Roth 457b plans, as I am not familiar with that option.

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Re: 457 Rollover while still at job

Post by JohnnyO » Sun Sep 02, 2012 9:44 am

I am tagging along on your post as I am facing / asking a similar question on another post about the ability to rollover a dormant and no longer offered 403(b) before leaving the employer.

[The post is at 403(b) question, please respond to JohnnyO's question in that thread. --admin LadyGeek]

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