457 plan and public safety employee
Former police officer age 48 has stopped working for the City a short while ago. He has a 457 plan. Being that he did not wait until age 50 to retire from the department will he be able to take withdrawals from the plan without penalty once he hits age 50? Or can he only take withdrawals from the plan if he stopped working for the City at age 50 or older?
Permalink Submitted by Denise Appleby on Wed, 2009-04-01 22:46
[quote=”[email protected]“]Former police officer age 48 has stopped working for the City a short while ago. He has a 457 plan. Being that he did not wait until age 50 to retire from the department will he be able to take withdrawals from the plan without penalty once he hits age 50? Or can he only take withdrawals from the plan if he stopped working for the City at age 50 or older?[/quote]
The 10% early distribution penalty does not apply to distributions from a 457 plan, unless the distribution is attributed to amounts rolled over from another type of retirement plan. If he did not rollover an IRA 403(b) or qualified plan to his 457, he has nothing to worry about in that regard. If he did, then he would not be eligible for the age 50 waiver if he terminated at age 48.
See Alan’s response here for more info http://www.irahelp.com/forum/viewtopic.php?f=1&t=2085