Distributions from 457f plan

[Guest Clain]

I'm trying to understand what distribution options are available in a 457f plan. Does the balance get paid as a lump sum, or can the payments be spread out over a period of time? If the payments can be spread out, what is reportable as taxable income? I assume that it is just the amount received in the tax year, but I have seen a couple sources that imply that the entire account balance would be taxable.

Any insight would be appreciated. Thank you.

[J Simmons]

The income taxation of 457f benefits is the first year in which the right to (eventual) payment is no longer

conditioned upon the future performance of substantial services by any individual

IRC § § 457(f)(1)(A) and (3)(B)

So it really doesn't matter whether paid all at once or spread out.