Tax rate if 457 is cashed in early?

[Guest Nevada3]

I am going to quit my job soon and plan to arrange to receive my 457 investment back in the form of monthly payments. Will I be taxed as an independent contractor or more like a regualar employee, as I am now? 1) I have been told distributions will be taxed as income, will it be taxed at the regular employee FICA rate or will it be taxed at the higher self employment rate (essentially paying both the employer and employee portions)? 2)Are there any hidden problems (taxes, fees) that may arise with my plan?

Thanks for your help!

[mbozek]

Ask your employer how it will be taxed. 457 plan distributions of NP employers are taxed and reported as W-2 income. Public employer 457 plan distributions are reported on a 1099 and are eligible for a tax free rollover.