Purchase of DB Service Credit

[jsb]

EGTRRA permits in-service distributions (eg. current, active employee who is a plan participant) from a governmental 457 plan to purchase governmental DB service credit. As a trustee-to-trustee transfer, this is not a taxable event.

Question: Can a post-service distribution (eg. former employee who still has money in your plan) to purchase governmental DB service credit be handled in the same way, without tax consequences, as a trustee-to-trustee transfer?

For the discussion, let's assume that the 457 plan has fully adopted EGTRRA flexibility and the separate DB plan will accept the distribution.

We can't find where this is prohibited, but neither can we find where it is permitted. Any cites greatly appreciated! Thanks in advance to all.

[jsb]

Reposting. Really could use some insight from the experienced administrators in this group. Thanks.