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Posted

When transferring an account between non-governmental 457(b) plans the recipient plan must treat the elections made under the transferor plan as if made under the recipient plan.  What if the election made under the transferor plan includes a method of distribution that is not offered under the recipient plan?  Must the recipient plan recognize that method of distribution?

Thanks for any and all insight. 

 

Posted

An honor to be responding to THE cathyw!  Now I just have to have a discussion with the Simpson's 3-eyed fish guy to have completed my benefitslink bingo card :)

I think I dug into this a while ago and found it really vague but I believe the answer is yes.  It's one of the reasons I recommend that non-gov 457(b) plans do not allow transfers in.  Another tricky one is whether the right to defer also needs to carry over (ex. a plan permits one payment deferral but the prior plan allows 2 payment deferrals)

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