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Rolling over your 457 Become a Member
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.

Rolling Over Your Account to an IRA has its Advantages / Disadvantages:


       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.


       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, or 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 a mandatory 20% withholding will be applied. 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 calendar 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 may be subject to taxes and a 10% penalty
       may apply to individuals prior to reaching 59 1/2 years old. See your plan administrator
       for complete details.


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