IRA vs 457 plan

[sgeeeee]

I'm in the process of consolidating some of my investment accounts and simplifying my portfolio management. My DW and I both have 457plans from former employers and I was getting ready to roll them over into our existing IRAs. But when I sent for forms to do this, the brochure that came with one of the forms claims that money can be withdrawn from a 457 plan at any time (no need to wait till age 59.5, or use a SEPP, etc.)

I'm going to look into this more, but I thought one of you might know if this were true or where the best place to look for the answer is.

Thanks.

 

[frank2009]

IRA vs. 457 plan

yes, the way i understand it, money can be withdrawn from your 457 plan anytime after retirement with just a phone call; no tax penalty. The money however is taxed as earned income.

maybe your 457 plan has a web site to confirm?


best of luck,
frank

 

[Skylark]

After you leave gummint servce, you can start withdrawing. It was designed for police and fire workers who often cannot physically continue to work until normal retirement ages, and is intended as a bridge to social security and defined beneifit pensions.

Read the fine print on your plan.

 

[flipstress]

You know, two weeks ago, I just checked my own 457 plan on this. I am not retired, and I am maxing out on this deferred comp plan and I finally thought to ask what the rules were for availing of the money.

I had assumptions that I had to wait until I reached a certain age (55, 59 1/2, etc.) or had put in a certain number of work years, but I was delighted to find out that the money is accessible at any time upon separation from my government employer.

What a nice surprise for me and for you, too.