Tax treatment of life insurance proceeds under a 457(b) plan: - how tr

[Guest dory]

Can the death proceeds of a life insurance policy held under a 457(B) plan be rolled into an IRA by a spouse beneficiary?

[mbozek]

Under Reg. 1. 457-1© the proceeds of life insurance are considered part of the deferred compensation in the account. If the plan is maintained by a govt employer the spouse can roll over the account balance to an IRA. IRC 457(d)(1)©. The surviving spouse of benefits mainatined by a NP emplloyer can only make a tax free transfer to another 457(B) plan.