457b

[MGUNS 0]

I am in a 457b city sponsored plan. I am retired military, receiving a pension. I was put into this plan not by choice. I need my funds, but do not meet any of the "extreme hardship guidelines". I am told, (by ING rep) I cannot take a loan against my acct. But, I have read otherwise. What is true?? After withdrawal, I want to get into the city retirement plan. HELP!! Does anyone know how I can get what is rightfully mine. There is way too much government control over my money. Oh...the city plan is in the state of MA. if that helps.

Thanks

[Admin 0]

As you are finding out the rules on withdrawing from a 457(b) are pretty strict. Some plan sponsors and some vendors make 457(b) loans available but are not required to so. Are you able to reveal why you need the funds? And what do you mean when you say you were put in the plan, not by choice? Thanks.

 

Dan Otter

 

 

[MGUNS 0]

As you are finding out the rules on withdrawing from a 457(b) are pretty strict. Some plan sponsors and some vendors make 457(b) loans available but are not required to so. Are you able to reveal why you need the funds? And what do you mean when you say you were put in the plan, not by choice? Thanks.

 

Dan Otter

 

 

[MGUNS 0]

As you are finding out the rules on withdrawing from a 457(b) are pretty strict. Some plan sponsors and some vendors make 457(b) loans available but are not required to so. Are you able to reveal why you need the funds? And what do you mean when you say you were put in the plan, not by choice? Thanks.

 

Dan Otter

 

I did not want to be any plan, period. I perferred to have the money in my paycheck and invest how I saw fit.

I have made less than 900.00 in four years. I have some unforeseen expenses that need to be addressed, but they do not fall within the guidelines of the "emegency withdrawal. I was told to try the withdrawal under "other" option. But, I read that the IRS looks at this request with a fine tooth comb (big brother again).

I have nothing to hide, but I certainly don't need the aggravation of an audit. So... are you a professional expert on these matters? If so, any advice on how to get MY money would be appreciated.

Could I terminate my employment, close the acct., get my money and be re-hired? Would this be a viable option?

Thanks

[Admin 0]

The reason the government makes it difficult to access money from retirement accounts is that they don't want them to be used for short term savings. In exchange, participants receive the dual benefit of upfront tax deduction and no taxes on earnings growth. That's not a bad deal. I am still curious as to why you weren't given an option to participate. Was it an "opt out" situation in which you had to choose to not participate? Terminating employment would permit you to access the money. However, seeking immediate re-employment would, I believe, be a dangerous way to go.

 

While it won't give you access to money in your 457(b) plan, given my understanding of your intent, you may want to cease contributions and direct this money to a non-retirement account that will allow you penalty free access. Of course, you won't receive the tax benefits as described earlier. I'll be curious to see what others recommend. I wish you the best of luck.

 

Dan Otter

[Matthew 0]

I would like info on withdrawal or loans from my 457 based on financial difficulties. My situation is getting worse due to less pay and furlough days. I am a correctional officer in the state of Wisconsin. Please tell me my options or legal rights to my money. I NEED MY MONEY!