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457(f) Portability


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Guest GoldenBear03
Posted

I am working with a school district that has a 403(b) and is interested in starting up a new 457(f). They are interested in 457(f) portability issues. Specifically, what events would trigger one being allowed to transfer assets between their 457(f) and their 403(b). Any help you can provide or resources you can direct me to are much appreciated.

Posted

A 457(f) plan is not an "eligible retirement plan" (see Code ss 402©(8)(B) for definition), so it is not possible to roll over moneys between a 457(f) plan and a 403(b) plan (which is an eligible retirement plan).

Posted

How much money will employees be able to defer? Under 403b they can exclude 15,500 by salary reduction (+5,000 if over 50) plus employer contributions of up to 29.5k. A SD can establish a 457b plan and increase the salary reduction amounts to 31k or 41k. Employees with 15 yrs of service can exclude another 3k for up to 5yrs. The 403b and 457b accounts can be rolled over to an IRA, a qualfied plan, 403b annuity or govt 457b plan.

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