457 b Plans
Can a 457b Plan be rollled over to an IRA once an employee has severed employment? If not, what are the participants options with this account?
Can a 457b Plan be rollled over to an IRA once an employee has severed employment? If not, what are the participants options with this account?
Permalink Submitted by Alan Spross on Wed, 2008-04-23 21:07
A government 457b can be rolled over to other retirement plans including IRAs.
However, a non govt 457b cannot be rolled over, therefore the participant can only try to manage the amount of distributions taken in a given year.
Permalink Submitted by Raquel Santiago on Sat, 2017-06-24 18:15
I hope someone can clear this up a bit…I have backed taxes and an intent to levy ….I have a non goverment 457 b plan for over 13 years now is it possible to retrieve funds for my 457 b plan to pay off the irs???
Permalink Submitted by Alan - IRA critic on Sat, 2017-06-24 19:19
You would have to ask the plan if you are eligible for a distribution and if the IRS has placed a lien on the plan that would prevent the plan from distributing amounts to you. The IRS cannot levy funds that could not otherwise be distributed to you under the terms of the plan. You should have contacted the IRS to work this out before the final step, which I understand is the intent to levy after 4 prior Notices were sent. Rather than incurring legal fees at this point, it may cost you less to just allow the IRS to remove the funds to the extent you would have been eligible. Note that whatever amount you owe the IRS, the distribution will add more taxes due because your 457b is most likely entirely pre tax money.