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May a governmental 457 plan accept a plan-to-plan transfer from a tax-


Guest David G
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Guest David G

May a 457 plan sponsored by a governmental employer accept a plan to plan transfer from a 457 plan sponsored by a tax exempt employer?

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Yes, provided that the recipient plan provides for such transfers. (Many do not, and plans are only permitted, not required, to include provisions permitting such transfers.)

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.

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Guest David G

I received an informal response from a local IRS employee who spoke with their National Office that a transfer from a tax exempt to a governmental would be okay if the other requirements were met, but that a transfer from a governmental to a tax exempt would not work because of the exclusive benefit provision in 457(g) for governmental plans.

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That is interesting, and I'm not sure it is supported by law. However, it undelines the need for some kind of rollover mechanism for 457 plans, since apparently the IRS is taking the position that even the one current mechanism for making such plans portable is quite limited in its scope.

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.

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