Protection of governmental 457b from creditors

Submitted by learner on Fri, 2022-02-18 00:47

My governmental (state) 457b plan is eligible for a rollover to 403b after retirement. Does 457b also have the same protection from creditors as 403b or 401k? I am over 59 1/2 and the advantage of penality-free distribution from 457b is moot.



Submitted by Alan - IRA critic on Fri, 2022-02-18 01:48

Generally, govt 457 plans have creditor protection only in bankruptcy. The broader ERISA anti alienation clause does not apply to 457b plans. If the 457b is rolled into a 403b, then the question is whether it’s an ERISA 403b or a non ERISA 403b.

Submitted by learner on Sat, 2022-02-19 22:11

I found out that it is not easy to figure out whether the 403b is indeed an ERISA 403b or not.  The only statement which is possibly related to the question is a phrase “a governmental plan exempt from Titles I and IV of the Employee Retirement Income Security Act of 1974” in a 53-page document.

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