UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev Thread | Next Thread
Author: coban Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76418  
Subject: 457 F Defered Compensation Date: 8/26/2006 4:52 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
I have a 457 F Defered Compensation Plan with my current employer that will mature in about another year. It will be a lump sum distribution. Can I roll this over into another type of account our do I have to take the total distribution and pay taxes on it all at that time. If I have options what might they be? I do not want to have to pay taxes on the total amount upon distribution.
Thanks!
Robert
Print the post Back To Top
Author: buzman Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 53347 of 76418
Subject: Re: 457 F Defered Compensation Date: 8/26/2006 5:33 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
Can I roll this over into another type of account our do I have to take the total distribution and pay taxes on it all at that time.

------------------------------------------------------------------------

If you have left the employer you should be able to a trustee to trustee transfer to IRA.

If you are still employed I am not sure what your options may be, speak with someone in your HR department.

Depending on the employer 457 plans do have some peculiar distributions options and tax ramifications so my suggestion is to speak with a professional.

Wish I could help more.

buzman


Print the post Back To Top
Author: aj485 Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 53350 of 76418
Subject: Re: 457 F Defered Compensation Date: 8/26/2006 6:35 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 1
I have a 457 F Defered Compensation Plan with my current employer that will mature in about another year. It will be a lump sum distribution. Can I roll this over into another type of account our do I have to take the total distribution and pay taxes on it all at that time. If I have options what might they be? I do not want to have to pay taxes on the total amount upon distribution.

It depends on if the plan is 'qualified' or not. You need to ask whoever administers the plan if it is a 'qualified' plan. A few years ago, the rules for 'qualified' plans were loosened up a bit, but some 457 plans still have not taken advantage of the rule changes to become qualified. If it is qualified, you can roll it over into an IRA.

However, if you are being forced to take a lump-sum distribution, your plan may not be qualified. In this case, you need to check to see if you can take the distribution by getting something other than a lump-sum. If not, you will end up paying taxes on it. However, what you pay in taxes still should not be as much as your distribution is, so you should end up with more available money than you started with.

AJ

Print the post Back To Top
UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev Thread | Next Thread
Advertisement