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"Yes, it does up to a point. Remember that when you retire you must take your 457 plan money, and any distribution will be taxed in full at ordinary rates in the year it is received. Some 457 plans will allow distributions in installments over a period of years, typically from 2 to 15 years. Others do not. In the latter case, all the money will be paid out and taxed in one year, and that can be a significant tax bite. If your 457 plan is one of those that require a single distribution, then you'll have to see if what's left after taxes will last you until you reach age 59 1/2. Other than that issue, you have a very reasonable approach to an early retirement."

I called today and asked about this. They told me I can have it distributed any way that I desire. Lump sum, annual distributions or varied distributions every month.

Thanks for responding TMFPixy
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