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Rollovers from 457 plans to IRAs


Guest anthony devito
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Guest anthony devito

Some time ago there was some proposed legislation that would permit the rollover of 457 plans (governmental) to IRAs. I read some exchanges on the topic in the bulletin boards. The discussion seems to be over a year old. It is my understanding that the legislation was not passed.

Are there any new developments or any anticipated developments regarding rollover of 457 to IRAs?

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  • 3 months later...
Guest jwhsfo

Does anyone know if 457 plan flexibility has been increased at all? I am a federal employee with a current TSP plan and a previous 457 plan from a former city government job. I don't want to take a lump sum distribution from the 457 plan nor do I want, necessarily, to defer distribution for many years (I have no idea when I may need the money for retirement or illness, etc.) I was recently told that I would be able, "soon" to roll over "other qualified plans like other 401K plans" into my federal government TSP plan but this "other qualified plans" is not clear and the people at the TSP administration can't give me any answer. Thanks.

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Guest anthony devito

The information you have received is correct. The proposed pension reform legislation over the past several years has included a provision for rolling over 457 plans to IRAs. That was never passed. I think the new tax bill includes a pension reform section that includes this provision. Here is a link by National Association of Tax Planners that outlines all provisions of the new tax bill.

http://www.natptax.com/reliefact524.pdf

At the top of page 9 of the adobe document, it appears that the 457 plans can be rolled over. I think this will become effective after 2001, that is January 1, 2002.

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  • 1 month later...

Does the new legislation require the satisfaction of a triggering event, e.g. retirement, in order to effectuate an eligible rollover distribution to an IRA? Or can an eligible rollover distribution be effectuated at any time so long as the Plan Document allows for access to the account balance? I would appreciate reference to the statutory text.

Best wishes,

Joel L. Frank:)

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