kwalified Posted December 18, 2018 Posted December 18, 2018 A hospital employee is concerned that his 457 account balance may be jeopardized if the hospital becomes insolvent. He is considering rolling it over to a 403(b) he has. He is age 70.5. Would it only depend on if the 403(b) allows for 457 rollovers?
CuseFan Posted December 18, 2018 Posted December 18, 2018 457 plans for tax-exempt (non-governmental) employers are non-qualified plans and, as such, are subject to the claims of creditors (as is his concern) and are not afforded favorable tax treatment upon distribution (distributions are taxed as ordinary income, and you cannot roll over to anything except possibly another NQ 457(b) plan of another tax-exempt entity if such plan allows). JamesK and Appleby 2 Kenneth M. Prell, CEBS, ERPA Vice President, BPAS Actuarial & Pension Services kprell@bpas.com
fmsinc Posted December 19, 2018 Posted December 19, 2018 Google - IRS Rollover Chart - and I suspect your answer will be found there.
Appleby Posted December 20, 2018 Posted December 20, 2018 On 12/18/2018 at 2:20 PM, kwalified said: A hospital employee is concerned that his 457 account balance may be jeopardized if the hospital becomes insolvent. He is considering rolling it over to a 403(b) he has. He is age 70.5. Would it only depend on if the 403(b) allows for 457 rollovers? What kind of 457 is it? Life and Death Planning for Retirement Benefits by Natalie B. Choatehttps://www.ataxplan.com/life-and-death-planning-for-retirement-benefits/ www.DeniseAppleby.com
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