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Subject:  Re: 457 Plan Rollover to Roth IRA Date:  1/8/2013  5:59 PM
Author:  TMFPMarti Number:  117320 of 124521

I have 457(b) deferred compensation plan from a previous (government) employer that I would like to rollover/convert into an existing Roth IRA account.

To the best of my knowledge, this 457 plan is “an eligible state or local government section 457 deferred compensation plan,” and therefore a “qualified retirement plan” for purposes of addressing eligible rollovers (per IRS Publication 575). My research indicates that I should be able to rollover/convert directly from a qualified employer sponsored plan to my Roth IRA custodian account via a “trustee to trustee” transfer. In other words, move the 457(b) funds directly into a Roth IRA without having to go through any additional interim steps. The amount transferred would be fully taxable as income (since the 457 funds were initially pre-tax). My understanding of this capability is based on the rollovers discussion in Pub 575, as well as from this chart (http://www.irs.gov/pub/irs-tege/rollover_chart.pdf) and other miscellaneous articles found from goggling the topic. I recall reading somewhere too that the rollover to Roth option is relatively new (2010?), as the original option to rollover that was established in 2001/2002 was limited to traditional IRAs