government 457 deferred comp
My retirement account is a government 457 deferred comp. plan. With the 457, funds are available for disbursement when the person retires at the age of 50. I am currently retired.
Regarding the 20% withholding the IRS will take from my 457 Roll Over, can I replace that amount in my Roth IRA with cash from my checking or savings accounts?
With a government 457 deferred comp. plan, is there any limitation to how often I can disburse the funds?
Thanks
Permalink Submitted by Alan - IRA critic on Thu, 2015-07-30 18:06
You can take distributions as often as the plan allows, and roll them over to a TIRA or Roth IRA, as long as the distributions are not paid as an annuity. Do a direct rollover to avoid withholding, but you can replace any withheld amounts within 60 days of receipt of the check and complete the rollover to either a TIRA or Roth IRA. If you make a Roth rollover contribution it will of course be taxable, although you could recharacterize it to a TIRA by the deadline if you change your mind.