§457(b)/Roth §457(b) Governmental
Account Portability
The §457 regulations provide for account portability for Govern-
mental §457(b) accounts, however your options for
moving your §457 assets may depend on the provisions in your employer’s §457 plan.
- While you are employed: Most employers’ plans allow you to exchange
accounts from one §457 approved vendor to another approved vendor (providing multiple vendors are offered). Consult with your advisor regarding plan provisions for information specific to your situation.
- While you are employed:
You may be able to rollover distributions from other eligible retirement accounts into your employer’s §457.
- While you are employed:
You may be able to rollover eligible distributions from your traditional §457(b) into a Roth §457(b) if your employer plan offers a Roth option.
- If you leave your job: Your account can be transferred into another employer’s §457(b) governmental plan (or rolled into another eligible retirement account) if both your new and former employers’ plans have provisions allowing the transfer/rollover. You may also choose to roll your §457(b) governmental account to an IRA or convert it to a Roth IRA. You have the option to rollover assets in your traditional
§457(b) account into a Roth §457(b) if your employer plan offers a Roth option and you are eligible for a distribution. Please consult your tax advisor before initiating such a change. Legend Equities Corporation and its affiliates do not provide tax information or advice.
1Traditional IRA distributions taken before age 59½ may be subject to a 10% premature penalty in addition to ordinary income taxes. Roth IRA distributions taken prior to age 59½ may incur a 10% penalty and income tax to any earnings.