tax exempt 457 distributions

[Guest eam4094]

I work for a tax-exempt organization. I have made pre-tax contributions to a 457 plan for the last 9 years. I am leaving the organization at 05/31/2010. I understand that the assets in my 457 plan become taxable when I separate from service. My questions are as follows:

1. My contributions are invested in various mutual funds held in trust. When the plan assets are distributed can ownership of the mutual funds be transferred from the organization to me or do the investments have to be liquidated and cash distributed to me?

2. If the mutual funds can be transferred, how/when will they be valued?

3. Regardless of whether distribution is made in mutual funds or in cash, the value of the investment will very likely be more or less than the original contributions. Is the difference between the value of the investment (or cash) and the original contribution amount treated as capital gains or loss for tax purposes?

4. Since my social security and medicare wages were not reduced by my pretax amount contributed to the 457 plan, I assume that the distributions will not be subject to FICA. Is this correct?

Thanks for any information you can provide at this confusing time.