457(f) deferred compensation

by Larry George
(Berryville, AR USA)

I have contibuted to a 457(f) deferred compensation plan for each of the past three years. Each year's contribution has gone into a separate account, with each account having a different payout date.


Can the 457(f) funds be rolled over into my traditional IRA rollover account? If so, must I wait for the payout date to arrange the rollover, or can the funds be rolled over before the payout date? Thanks.

Wendy: You can roll the 457 funds into an IRA after you terminate employment or retire. You can't do it until you leave employment (as you are likely still contributing).

I also have a 457, because I was a govt. employee too. The BENEFIT of a 457, for me, is that I can access funds when I need them -- before age 59 l/2.

I retired at 55, so between 55 and 59 l/2, I can withdraw funds and pay taxes -- but without a penalty.

IF I had moved those funds into an IRA, and then needed some extra money, I would have had to pay taxes AND penalty (which would be a huge loss to me). I would have lost at least 40% between the two...

So nothing is easy... and it depends on your employment status AND your age.

Hope this helps!

Click here to post comments

Join in and write your own page! It's easy to do. How? Simply click here to return to Retirement Questions/Answers.