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

[CM]

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)?

[jfoxcpacfp]

CM wrote:

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.
  
  
  
  

 

[CM]

jfoxcpacfp wrote:

CM wrote:

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.
  
  
  
  

.

[jfoxcpacfp]

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.