Announcement

Collapse
No announcement yet.

Can You Help with Governmental 457b Rules? My HR Dept. May Not Be Reliable.

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Can You Help with Governmental 457b Rules? My HR Dept. May Not Be Reliable.

    I have a 12/29/15 email from my Human Resources department reporting that, "(our) 457b plan IS a governmental plan and it CAN be rolled over into an IRA." This was a reply to my direct question.

    A quick Google search appears to confirm that any governmental 457b (but not a non-governmental 457b) can be rolled into an IRA (rather than distributed and taxed upon retirement or resignation). For example: https://www.cdcfcu.com/articles/dollars-and-sense/deferred-compensation-governmental-457-plan-rollo.aspx.

    However, when I asked the same question in a 3/18/17 email, HR sent me a Wells Fargo 457b plan summary document (dated 2014) that states:

    "Please note: Because the plan is a non-qualified plan, the Internal Revenue Service (IRS) does not permit your account balance to be rolled into a qualified retirement plan or Individual Retirement Account (IRA). You are permitted, however, to roll into another tax-exempt 457(b) plan."

     

    So, can you confirm that any governmental 457b plan can be rolled into an IRA (rather than distributed and taxed at retirement)?

    And, is there a way that I can independently verify that my plan is a governmental plan (rather than a non-governmental plan)?
    Erstwhile Dance Theatre of Dayton performer cum bellhop. Carried (many) bags for a lovely and gracious 59 yo Cyd Charisse. (RIP) Hosted epic company parties after Friday night rehearsals.

  • #2


    So, can you confirm that any governmental 457b plan can be rolled into an IRA (rather than distributed and taxed at retirement)? And, is there a way that I can independently verify that my plan is a governmental plan (rather than a non-governmental plan)?
    Click to expand...


    Please excuse my "like" above - blame it on PMP (Poor Mouse Positioning   )

    • Yes, an account with a governmental 457b plan can be rolled over to an IRA.

    • It's easy to confirm independently what kind of plan you have:

      • If you work for a NPO, you have a non-governmental plan.

      • If you work for a governmental entity, you have a governmental plan.




     
    Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

    Comment


    • #3







      So, can you confirm that any governmental 457b plan can be rolled into an IRA (rather than distributed and taxed at retirement)? And, is there a way that I can independently verify that my plan is a governmental plan (rather than a non-governmental plan)?
      Click to expand…


      Please excuse my “like” above – blame it on PMP (Poor Mouse Positioning ?  )

      • Yes, an account with a governmental 457b plan can be rolled over to an IRA.

      • It’s easy to confirm independently what kind of plan you have:

        • If you work for a NPO, you have a non-governmental plan.

        • If you work for a governmental entity, you have a governmental plan.




      .

      Erstwhile Dance Theatre of Dayton performer cum bellhop. Carried (many) bags for a lovely and gracious 59 yo Cyd Charisse. (RIP) Hosted epic company parties after Friday night rehearsals.

      Comment


      • #4
        You're welcome. HR probably knows little about the nuances of 457b plans - the plan administrator should be a better resource. The hospital is county-owned. You can r/o to an IRA, so much better than the options with an NPO 457b.

        You might find this article interesting. I keep it on my Pinterest page for personal reference.
        Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

        Comment

        Working...
        X