457(b) rollover possible?

Is it possible to roll a 457(b) for a tax-exempt organization into an IRA? I am told it can be done for a governmental 457(b), but NOT a tax-exempt organization 457(b)…..



The information you were given is correct.



Can they roll it out of the 457 Plan while they are still employed by the government?



Generally not unless they apply due to an “unforeseen financial emergency”. In addition, small distributions up to 5,000 are often available for small balance plans that have not been contributed to for a couple years.

There is no age based qualification such as age 59.5 as there is for 403b plans.



If you are officially retired from a government position with a 457 and/or a 401A, but are still employed on a part time basis at that position and still contributing, can you do a rollover. We have been advised that we can take distributions once we are collecting a pension, even though we are working part time. Would that apply to rollovers as well?



If you can get normal distributions, you should generally be able to complete a rollover as well, but a plan may have some special provision that applies to this.



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