Rolling Over 457 Balances

Q: My client is 59½ years old, and still employed with the employer. He wants to roll his 457(b) account to the employer’s 403(b) plan. Does age 59½ qualify him to do that?

A: No, a distributable event of age 59½ does not apply to a 457(b)! To roll over his 457(b) account, he would have to sever employment or attain age 70½. The exception is an account with a value under $5,000, which, if no contributions were made for the two years before the distribution, would be eligible for rollover treatment. (One time only, and only if the plan permits the “small account” exception.

DNN Web Control Container