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.
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.