457 Plan
have client who is still working for non-profit outreach. He has a 403b which he funds and the company matches a certain percentage.
However, another advisor a few years ago, told him to take out a 457 plan.
question:
Can the 457 plan be transferred or rolledover to an IRA now?
or
does he have to wait until he retires?
or
the 457 plan can only be transferred or rolled over to another 457 plan?
Thank you,
Douglas
Permalink Submitted by Alan - IRA critic on Thu, 2014-01-23 21:04
If the 457 is a government or school 457, it can be rolled over to an IRA. If it is a non govt 457 it cannot be rolled over. If he contributes to the 457 he might be able to take distributions while still working if he reaches the age specified by the plan, He would have to check with the plan when he could take in service distributions.
Permalink Submitted by Douglas Bauerband on Fri, 2014-01-24 21:08
The 403b is from Americas Keswick in whiting, NJ…a non-profit releif from addiction organization? Would that count as a school?
Permalink Submitted by Alan - IRA critic on Fri, 2014-01-24 23:00
It is probably a non govt entity, more akin to a hospital. Note that the 403b can be rolled over, it’s only the non govt 457 that cannot.
Permalink Submitted by BruceM on Sat, 2014-01-25 16:58
The savings in the non-profit 457(b) plan belongs to the non-profit organization, not to the employee. This cannot be rolled over to any other retirement plan and generally cannot be transferred to another employer’s deferred comp plan, although I’ve read that it has happended. It is held on the ledger of the non-profit organization and is distributed per the plan agreement. Although I’m sure it is rare, the following is a link to an announcement from St. Francis Hospital in Poughkeepsie NY that the plan is suspending payments due to financial hardship of the hospital. This could not happen with a retirement plan. http://www.plansponsor.com/Hospital_Suspends_457_Plan_Payments.aspx BruceMI got