joel Posted December 29, 2017 Share Posted December 29, 2017 Participants in government 457(b) plans must sever employment before they can make withdrawals from their accounts. Q.: Does the soon-to-be new law allow for in-service withdrawals upon attainment of age 59.5? Link to comment Share on other sites More sharing options...
Carol V. Calhoun Posted December 31, 2017 Share Posted December 31, 2017 No. That was in one of the previous versions, but not in the final version. There is also a trap for the unwary in the new law. While 457(b) plans of governmental employers don't count as remuneration for purposes of the new excise tax on excess compensation, 457(b) plans of private employers do. And it appears that it counts when it comes out of the plan, not when it goes in. So the guy who has been putting aside money in a 457(b) plan for decades, but who becomes a covered employee, may discover that a distribution from the 457(b) triggers the excise tax. People will have to be a lot more careful about when they take out 457(b) money. Employee benefits legal resource site The opinions of my postings are my own and do not necessarily represent my law firm's position, strategies, or opinions. The contents of my postings are offered for informational purposes only and should not be construed as legal advice. A visit to this board or an exchange of information through this board does not create an attorney-client relationship. You should consult directly with an attorney for individual advice regarding your particular situation. I am not your lawyer under any circumstances. Link to comment Share on other sites More sharing options...
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