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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.

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