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Do I keep the 457b
Old 06-08-2009, 07:15 AM   #1
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Do I keep the 457b

I plan to FIRE in February and have a 457B. The Plan is administered by Nationwide. I'm comfortable with the investment options and have been moving stuff around to get to my asset allocation. Since it's a deferred account there is no tax liability when I sell something and move it elseware. There is no early withdrawl penalty before 59 1/2. I don't see the point of losing that option with an IRA and then having to take equal distributions with a 72T option. Rolling to a ROTH would be costly and would have to be funded from the deferred account which the experts advise against. If things go right I do not plan on taking any disbursements prior to 59 1/2 but do like having the option. I have a small concern that my municipality would borrow against the plan if the economy got really bad. I have conflicting opinions on how much access the municipality would have or if this would ever occur. My FIRE would be at age 52. My thinking is to keep the 457b until at least 59 1/2 and then roll it over if it makes sense then. Can you roll over at any time or does it have to be upon termination of employment? What would you do with the 457b?

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Old 06-09-2009, 07:36 PM   #2
Dryer sheet wannabe
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Only at termination of employment. I have one also, plan on leaving it with them cause I like the investment options.

And you can begin withdrawls before 59.5 without penalty if you've retired.
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