Can 457 be transferred to 403b?
I have teacher that is employed by a school district that used to have a 457 which she participated in. Can we transfer the old 457 to an approved 403b?
If we can not process this transaction, does anyone have any suggestions of where we can move this money?
Permalink Submitted by Alan Spross on Wed, 2009-04-22 23:46
Assuming the old 457 was a govt 457b plan, it can be transferred to another 457b, 403b or other plan that would accept it. See att’d rollover chart for 2009:
http://www.mhco.com/Library/Articles/2008/ARoll_Chart_011008.html
Permalink Submitted by Bill Cooper on Sun, 2009-04-26 18:12
Upon separation of service a person under the age of 59 1/2 does not face the 10% penalty tax on withdrawls from a gov’t. 457 plan like they do with the 403b. If the person transfers the 457 into an IRA or 403b, the 457 assets fall under the tax code and are then subject to the 10% penalty tax if withdrawn before age 59 1/2. In addition if the person wishes access to the money they will have to borrow against the account and begin repayment immediately.