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lindaz

Withdrawal Of Funds

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I have been saving the maximum for the past five years in a 403b and a 457b. A colleague told me yesterday that I will have to withdraw my entire 457b when I retire in three years. If this is true (and I haven't read anything that says it is) I would have to pay huge taxes when I retire and take out all that money at once. Can someone inform me about the requirements?

Thanks,

Linda

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Guest Sierra

I have been saving the maximum for the past five years in a 403b and a 457b. A colleague told me yesterday that I will have to withdraw my entire 457b when I retire in three years. If this is true (and I haven't read anything that says it is) I would have to pay huge taxes when I retire and take out all that money at once. Can someone inform me about the requirements?

Thanks,

Linda

 

 

Your friend is wrong. Do yourself a favor and start reading the literature on distributions that you received from the outfits that sold you these financial products.

 

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I have been saving the maximum for the past five years in a 403b and a 457b. A colleague told me yesterday that I will have to withdraw my entire 457b when I retire in three years. If this is true (and I haven't read anything that says it is) I would have to pay huge taxes when I retire and take out all that money at once. Can someone inform me about the requirements?

Thanks,

Linda

 

 

Are you employed by a non profit or goverment entity? Government workers who participate in a 457b plan can rollover a lump sum distribution to an IRA. Non profit employees are not permitted to rollover the funds to an IRA.

 

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Guest Sierra

 

I have been saving the maximum for the past five years in a 403b and a 457b. A colleague told me yesterday that I will have to withdraw my entire 457b when I retire in three years. If this is true (and I haven't read anything that says it is) I would have to pay huge taxes when I retire and take out all that money at once. Can someone inform me about the requirements?

Thanks,

Linda

 

 

Are you employed by a non profit or goverment entity? Government workers who participate in a 457b plan can rollover a lump sum distribution to an IRA. Non profit employees are not permitted to rollover the funds to an IRA.

 

 

Lindaz: I would remain with the 457 Plan after retirement provided I am pleased with the investment selection, fees and service. I find too many participants rollover to an IRA because some professional distributor wandered into their kitchen and had a gift for gab. Please describe your Plan to us.

 

Joel L. Frank

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Yes, the type of employer you work for really matters here, as both intruder and Joel (Sierra) mention above.

 

If you work for a non-profit company (not a government), then you should be very careful about what you elect to do and when you must make such an election. It can make a huge impact on your taxes.

 

If you work for a government, then it's easy to avoid the taxation, as mentioned in both of the above posts.

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