457 Plan Penalty
Is it true that when seperated from an employer with a 457 plan, you can withdraw the funds without penalty, however when rolling to an IRA you lose this benefit?
Is it true that when seperated from an employer with a 457 plan, you can withdraw the funds without penalty, however when rolling to an IRA you lose this benefit?
Permalink Submitted by Alan Spross on Tue, 2008-05-06 00:18
That’s correct. There is no early withdrawal penalty on non qualified retirement plans, but there is for qualified plans and IRAs.
Therefore, if you need access to the funds and do not want to be saddled with a SEPP, wait until age 59.5 to rollover the 457 to an IRA.