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Author: wrtski4evr Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76418  
Subject: Re: 457(b) Date: 4/27/2005 4:45 PM
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From what I've read 457(b) money can be moved into your new employer's 457(b), 403(b) or 401(k) if the plan accepts such transfers, or into a Rollover IRA. It's possible that the current plan adminstrators your current employers uses doesn't allow transfers or even has 457(b) plans.

My wife is a teacher in a public school and she had no problem rolling funds from an old/inactive 403(b) account (from previous employer in different state) into a Fidelity Rollover IRA. A good source for information on 457 plans can be found at http://www.457bwise.com as well as the IRS website www.irs.gov/ep

There are many distinct differences between 403 & 457 plans. Some differences that caught my attention are:
(1) 457 plans are exempt from the 10% premature distribution penalty under IRC 72(t).
(2) 403 plans are really insurance products in sheeps clothing, carry high expenses and usually require distribution in typical annuity formats.

Not all schools districts offer 457 plan options as the insurance industry got their hooks into schools a long time ago.....
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