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Bob Morningstar

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  1. I was in the same boat, even the HR director suggested I take the money out. Since it was non-governmental money, I couldn't roll it into my new employers 403b plan. Play the taxes and find a way to invest it in some real value oriented stocks and make up for the taxes paid out!
  2. I recently voluntarily left my company after 13 years for a better opportunity. My old company is a non-governmental 501c4 not-for-profit with a 401k for all and a 457b for certain employees. My new employer is a not-for-profit 501c3 without a 457b program (unfortunately). I'm 46 and have 14 years to my planned retirement date (hopefully). I have a substantial sum in the 457b. It is my understanding, please correct me if I get it wrong, that I may: 1) Withdraw now and pay fed and state income tax (no 10% penalty). 2) Leave it with my employer until a date I specify then start a distribution. The employer has a decent future, but what if.....? I hate the fact that this money is a risk to company demise, bankruptcy, etc. My gut says take it out, pay the taxes, and put the remainder into my IRA. Questions: 1) If I leave it there and the employer elects to discontinue the program, what happens to my funds? 2) Can I take it out in some other form other than a lump sum? What would you do? I have very little debt and I am a conservative investor. I am not asking for investment advice per se, just need some guidance on the 457b portion of my investment portfolio. I apologize for asking here, the HR benefits specialist at my old company is completely clueless on 457b, she is new to the company and never heard of one till now.
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