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457(B) - Distribution Commencement Date

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Hi. We have an employee that participated in our 457(b) Plan. She terminated employment in June of 2009. Upon her termination, she completed the form to defer distribution commencement until a later date. She selected the maximum deferral, choosing to receive her account at age 70 1/2. She now comes to us and wishes to receive distribution of her account sooner (actually, I believe she wants to start distribution now). She is age 62. Am I correct in my reading of Treas. Reg. 1.457-7©(2)(iii) that the law permits a change to a distribution election ONLY if the change pushes the distribution date further into the future and that a change accelerating the distribution date is not permitted?


Thanks for any help.

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You are correct. Hopefully this was fully explained to the participant. The regulation does not allow acceleration once a written election has been made to delay the distribution to a specific date.


On the other hand, the 457(b) plan itself could be terminated, and perhaps that could precipitate an acceleration, but I suggest you seek legal counsel to verify that - check with those who drafted your 457(b) document.

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