No. of Recommendations: 0

<<My wife has a 457 plan at here work (U of Utah), so this affects us too. May I assume that when she leaves the U of U she can defer receipt of her 457 funds until such time as she needs (or wants) it, and does not have to take the income on termination. The other question is that if we move back to CA and then she takes her 457 funds, would she then have Utah income as well as CA income and would we be dealing with a 2 state income tax return for that(those) year(s) ?>>

Her distribution options will depend on the plan documents. Most will allow her to take it in installments over two to fifteen years. At best, she will probably be able to defer those distributions until January 1 of the following year. As to dual state taxation, there's a law against that for retirement plansso she should only be taxed in the current state of residence on receipt.

Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.