How do you correct an improper 403(b)plan into a 457 plan?

[Guest R. Johannes]

Several years ago the accountant for a public corporation (a corporation created under state law that is considered to be a subdivision of the State) improperly chose a 403(B) plan for the employees. The corporation is not a 501©(3) or a public education organization and should have a plan under 457.

What is the procedure for correcting the plan? What are the proper IRS forms, etc.? How do you avoid any rollover taxation in switching the plans?

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