 Distributions from 457f plan |
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 Jul 29 2009, 10:47 AM
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Registered User Group: Registered Posts: 20 Joined: 19-September 00 Member No.: 5,068  |
I'm trying to understand what distribution options are available in a 457f plan. Does the balance get paid as a lump sum, or can the payments be spread out over a period of time? If the payments can be spread out, what is reportable as taxable income? I assume that it is just the amount received in the tax year, but I have seen a couple sources that imply that the entire account balance would be taxable.
Any insight would be appreciated. Thank you. This post has been edited by Clain: Jul 29 2009, 10:47 AM -------------------- Clain
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Jul 29 2009, 08:02 PM
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Registered User Group: Registered Posts: 2,139 Joined: 23-July 06 Member No.: 16,532 |
The income taxation of 457f benefits is the first year in which the right to (eventual) payment is no longer
QUOTE conditioned upon the future performance of substantial services by any individual IRC § § 457(f)(1)(A) and (3)(B) So it really doesn't matter whether paid all at once or spread out. -------------------- John Simmons
jsimmons@ida.net Note to Readers: For you, I'm a stranger posting on a bulletin board. Posts here should not be given the same weight as personalized advice from a professional who knows or can learn all the facts of your situation. |
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| Lo-Fi Version | Time is now: 21st November 2009 - 11:45 PM |