IRA Rollover to a 457 Plan

[Guest Tallyman]

While it is clear that rolling a governmental 457(b) to an Rollover IRA will "taint" the money for the 10% excise tax. Can this money be cleaned of that problem by rolling it back into another existing governmental 457(b) plan or are the previous 457(b) funds forever tainted? Can there be a "tracing" of the funds?

[John Feldt ERPA CPC QPA]

They are now forever tainted as far I can tell.

[joel]

Once the accountholder attains age 59-1/2 the problem ceases to exist. No?

[John Feldt ERPA CPC QPA]

Yes, of course, change the age of participant!

So, forever only lasts until the participant's age reaches 59 1/2.

[Guest Tallyman]

Thanks for the replies. Yes, it appears that forever lasts until age 59 1/2. However, participant is only 51. I could not find anything to describe any "tracing" of the funds. That is that they were originally 457 funds and are being moved back into a 457 plan.