457 Withdrawal Information
You are eligible to begin receiving payments from your 457 Plan account at retirement or when you leave employment with your current employer. How and when you choose to take payments from your account are important decisions. There are many considerations - the form of payment, the tax consequences, and your other forms of retirement income. You should review several factors before making a decision, including:
- You only pay taxes on money you receive.
- Funds that remain in your account and any future investment earnings continue to accumulate tax-deferred until they are withdrawn.
- You may continue to direct the investment of the assets that remain in your account as allowed by your employer's plan.
- Any remaining account balance will be available for distribution to your beneficiary(ies) in the event of your death.
- You are subject to 20% mandatory federal tax withholding if you elect to directly receive funds eligible for rollover to another employer plan or an IRA. Please consult the Special Tax Notice regarding Plan Payments contained in the 457 Benefit Withdrawal Packet.
- Regardless of your age, you are not subject to the 10% early withdrawal penalty on 457 plan contributions and earnings. However, the penalty may apply to non-457 plan assets that are rolled into your 457 plan and subsequently withdrawn prior to age 59½.
When can I withdraw assets from my account?
You are generally eligible to withdraw funds from your 457 plan under the following circumstances:
- When you retire
- When you leave your job, for any reason
- During unforeseeable emergency circumstances*
For additional information regarding withdrawals from your 457 plan, or to request a withdrawal, please contact ICMA-RC's Investor Services at 1-800-669-7400
*Unforeseeable emergency is defined as a severe financial hardship resulting from a sudden illness, disability or accidental property loss, subject to strict IRS guidelines.