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  • 457 plan

    My employer has started offering a 457 retirement account. It is unfunded and pays you put over 5 years once you leave the institution.

    If (or when) I leave the institution, can I rollover this 457 to a solo 401k? I would open a new solo 401k account and then do a rollover, so I don’t have to get paid out over 5 years.
    I noticed on the fidelity website that they allow 457 rollovers into the solo 401k.
    I don’t have a small business (my wife does).
    I would like to maximize my tax deferral account as much as possible.

    thanks everyone!

  • #2
    I assume this isn’t a governmental 457 so
    the answer to your question is no you cannot roll it over to a i401k

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    • #3
      If only there was a WCI blog post about this

      Comment


      • #4
        Originally posted by Bmac View Post
        If only there was a WCI blog post about this
        https://www.whitecoatinvestor.com/no...day-qa-series/

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        • WorkforFIRE
          WorkforFIRE commented
          Editing a comment
          Awesome. Thank you! Answers my question!

      • #5
        This is a tax -exempt employer; 457b plan. So if I understand this correctly, I need to go to another tax exempt employer to transfer the assets if I leave.
        And so, transferring to a solo 401k would not be possible.

        Want to make sure I am understanding this correctly.

        thanks again.

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        • #6
          The question you need to answer first is if it is a governmental or non-governmental 457b.

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          • #7
            It’s a non governmental plan. Thanks for the link. Very helpful.

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            • #8
              Ask for a copy of the plan document, it will explicitly say you can rollover to 401k or IRA in the transfer/rollover section if that is allowed.

              I think you can only do that for governmental 457b. Read on the difference between governmental and non governmental plans. Essentially you are only likely to have a governmental plan if you work at a state funded University or for some kind of state funded hospital. The going wisdom is governmental plans are worth using and are essentially second 401ks, if it is non governmental then you are better off using taxable (bc the assets are at risk while they are in your 457b, they are still the employers and can be taken by the employers creditors; and distribution can be lump sum or rushed when you retire or leave employment resulting in high income and unfavorable tax)

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