2-1/2 years ago I left my position at a non-profit. The internal staff member responsible for paperwork for exiting employees either failed to notify the carrier for the 457 plan or the carrier failed to send me the materials with instructions for what choices I had for the funds. In the process of my exit interview I was never told about any of the rules regarding the 457 plan.
My current financial adviser recently contacted the carrier with another question about funds in a 403b plan I still have sitting with them. The carrier said, "Oh, she still works at XYZ organization." After some further questioning and checking of their records, they said they had not sent out the packet of materials and/or had never been notified that I was no longer employed.
My former employer is pointing the finger at the carrier and the carrier at my former employer. Based on my conversation with my former employer, they have now notified the carrier and I've been told that all of the money in the 457b account will be paid to me in a lump sum and that I will be responsible for full taxes based on my current income.
Do I have any recourse? I would much prefer to defer payment, if possible, or spread payments out over several years. I am three or four years away from retirement.