LOGO
 
 
         HOME      |  457-An Intoduction    |  457(b)FAQs   |    Rolling Over Your 457   |    Contact Us          
Rolling over your 457 Become a Member
  banner
To roll or not to roll, that is the question. After more than two decades of working with thousands of 457 participants I will tell you that the overwhelming vote is to roll. There are many advantages but each option needs to be explored on an individual basis. Learn more by contacting one of our sponsors or emailing us with your questions at info@457.com.
Retirement at a Glance
"A happy man is not a
person in a certain state of
circumstances, but rather
a person with a certain
set of attitudes."
Your money will continue to grow tax-deferred until you need it.
Plans give you the flexibility to withdraw your funds after age 591/2, the way you want, without restrictions.

Advantages:

       Control Control Control. You can now shop for the best deal, not just the best deal your employer offers you. And your plan will never change on you, you own it and control it.

Go shopping, get guidance, do your homework.

Disadvantages:

       If you are going to work for another employer that offers a 457(b) plan and accepts rollovers into the plan then you may want to consider rolling it into their plan. In that scenerio you will stay in a 457(b) plan and it will provide you with the ability to withdraw funds prior to age 59 1/2 (provided you leave employment again and want to pay taxes on that money)- not such a good idea since this money should be earmarked for retirement.

 


       First, determine your eligibility to withdraw your money. Remember, you can only rollover
       your money once you have retired, of left your current employer. The only exception
       would be a case of extreme hardship as defined by your plan.


       If you are eligible, a "trustee-to-trustee transfer" is the easiest way to rollover.
       The money is sent directly by your old plan's custodian to your new IRA custodian.
       Withholding tax is avoided. If you elect not to do a "trustee-to-trustee transfer",
       you will receive the money but you will pay a 20% tax as a penalty. Even if you meet
       the required 60-day deadline for re-depositing the money into an IRA, taxes will still be
       withheld taxes until the end of the celender year. If you want a full refund, you must
       come up with the money that was withheld in taxes and deposit it into your IRA within
       60 days. Failure to do so will mean that you'll be penalized. See your plan administrator
       for complete details. The funds should be kept separate in a plan that is designated as
       






 

 
About 457.com | Contact Us | Home | 457-An Introduction | FAQ’s
Rolling Over Your 457 | Become a member


Registered Representative of, and securities, advisory services and insurance products through INVEST Financial Corporation (INVEST), member FINRA /SIPC, a registered investment advisor and affiliated insurance agencies. INVEST is not affiliated with other entities referenced.

This website may contain concepts that have legal, accounting and tax implications. It is not intended to provide legal, accounting, or tax advice. You may wish to consult an attorney, tax advisor, or accountant regarding your specific situation. No representations are made as to the accuracy of the information contained herein or any information contained in any link provided herein.

Important Consumer Information:

This site is for informational purposes only and is not intended to be a solicitation or offering of any security and;

1. Representatives of a broker-dealer ("BD") or investment advisor ("IA") may only conduct business in a state if the representatives and the BD or IA they represent (a) satisfy the qualification requirements of, and are approved to do

business by, the state; or (b) are excluded or exempted from the state's licensure requirements.

2. Representatives of a BD or IA are deemed to conduct business in a state to the extent that they provide individualized responses to investor inquiries that involve (a) effecting, or attempting to effect, transactions in securities; or (b) rendering personalized investment advice for compensation.