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tblack

Withdrawal From 457 Plan

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Hi,

 

I'm new to the 457 plan, and am currently researching the benefits of this retirement vehicle. I don't have an "unforseeable" emergency, but may possibly need to borrow, as I position myself to make a first home purchase and deal with associated costs.

 

I was told that I could withdraw up to 50% if needed, but would need to make arrangements to repay the loan. However, after reading through the literature, it doesn't sound like this is even possible. Is this true?

 

Is anyone aware of 457 plan circumstances where one can borrow,from the 457 plan,

aside from when there might be "unforseeable emergencies listed", which won't incur a penalty for taking an early distribution?

 

Any and all feedback is much appreciated.

 

Thanks

TBlack

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Guest Sierra

tb:

 

457(b) plans are authorized to offer loans. Check with your plan administrator to determine if your Plan offers this benefit. Remember that borrowing from such a plan is really not a loan because your investment balance is reduced by the amount of the loan. In reality you are withdrawing your own money and agreeing to pay yourself back. So even if you always pay yourself back, upon retirement you will have substantially less as an account balance because the full value of the account was not growing for you 24/7/365 days per year. Try not to borrow in this way. If you belong to a public retirement system take out a loan from them.

 

Peace and hope,

Joel L. Frank

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