UnThreaded | Threaded | Whole Thread (5) | Ignore Thread Prev Thread | Next Thread
Author: SunnyP Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75335  
Subject: 457Plan Date: 7/28/2000 10:59 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
I received my ex-husband's 457 money in our divorce settlement. I know I can't touch the money until he separates from his employer. It is my understanding that when this happens, I will receive a lump sum settlement. This fund is well in the 6 figure area and will probably grow considerably in the next 10 years before I expect he will retire. The tax bill will be considerable and will certainly cut into my retirement funds. Does anyone out there know any way around this??

Sunny
in Sunny So FLA
Print the post Back To Top
Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 23768 of 75335
Subject: Re: 457Plan Date: 7/29/2000 7:55 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Greetings, Sunny, and welcome. You wrote:

<<I received my ex-husband's 457 money in our divorce settlement. I know I can't touch the money until he separates from his employer. It is my understanding that when this happens, I will receive a lump sum settlement. This fund is well in the 6 figure area and will probably grow considerably in the next 10 years before I expect he will retire. The tax bill will be considerable and will certainly cut into my retirement funds. Does anyone out there know any way around this??>>

There is absolutely no way to avoid taxation on the distribution of a 457 plan to you. The plan, though, might afford you the opportunity to take the money over time. Many 457 plans will allow annual installments from two to fifteen years. If so, that would tend to lessen the overall tax bill to you compared to taking it all in a total cash payment. You should check with the plan administrator to see if that's possible in your case.

Regards..Pixy

Print the post Back To Top
Author: echo222 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 23803 of 75335
Subject: Re: 457Plan Date: 7/31/2000 5:09 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Sunny, according to most 457 plans you have 60 days
after your ex leaves his job to file a distribution
plan. If you don't file a plan you will receive a
lump sum. The withdrawal amount is based on
actuary tables. You will need to contact the
administrator of the plan to be sure you make the
right move.
Have a nice day. echo 2.



Print the post Back To Top
Author: m3hammar One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 23821 of 75335
Subject: Re: 457Plan Date: 8/1/2000 1:27 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Sunny,

I have a 457 plan through Nationwide. I found out that I CANNOT roll the money into an IRA (because it is non-qualified funds). What I CAN do is leave the funds right where they are as long as I select this option on the distribution form that will be sent to me.
Also, I can move the funds around within the plan and select a different payout method at any time.

There is also legislation (according to Nationwide) to make these funds qualified to allow for the rolling of my assets into an IRA. I hope this goes through.

Hope this helps,

Mike H

Print the post Back To Top
Author: SunnyP Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 23951 of 75335
Subject: Re: 457Plan Date: 8/6/2000 10:55 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
<<according to most 457 plans you have 60 days
after your ex leaves his job to file a distribution
plan.>>

That's always supposing that I know he's left his job!!! I don't think he'll be kind enough to tell me!!

I sure hope that legislation goes thru....I don't mind paying taxes on it, just not all at once in a lump sum. :( :( That would put me in the top bracket & I'd lose most deductions, etc.

Thanks for you replies

Sunny
in Sunny So FLA

Print the post Back To Top
UnThreaded | Threaded | Whole Thread (5) | Ignore Thread Prev Thread | Next Thread
Advertisement