Guest morasp Posted July 23, 2011 Share Posted July 23, 2011 I have a 457 account and would likde to take a distribution and pay the taxes on the the money. The plan administrator said he needs to withold 20% for taxes. Isn't it better to pay the taxes with outside after tax money? How can I do this? Link to comment Share on other sites More sharing options...
mbozek Posted July 24, 2011 Share Posted July 24, 2011 I have a 457 account and would likde to take a distribution and pay the taxes on the the money. The plan administrator said he needs to withold 20% for taxes. Isn't it better to pay the taxes with outside after tax money? How can I do this? Do you work for a non profit or a public employer? if you work for a public employer you can rollover the funds to an IRA and not pay any tax. If you work for a NP there is no rollover option and your benefits will be taxed as w-2 income and subect to wage witholding, not 20% tax withholding. This assumes that you participate in a 457(b) plan. mjb Link to comment Share on other sites More sharing options...
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