Mandatory Distributions?

[Fred Payne]

In a defined contibution plan, a terminated participant with an account balance in excess of $5,000 can opt to leace his or her account balance in the plan and not accept a distribution.

Does a terminated participant in a 457 plan have the same right?

Thanks.

[Guest KCW]

It depends on the terms of the plan.

Our 457(B) plan allows this (subject to RMD regs of course).

In fact, from about 1983 to present our plan has defaulted to payment at the partcipant's Normal Retirement Date (age 62 in our basic pension plan) unless the participant elects to take an "early" distribution.

Prior to 1983 our plan defaulted to a lump sum 30 days from termination unless the participant elected to leave his or her balance in the plan.