[Ami]

My husband has both a 401 and 457b from work. If he leaves his job is he required to pull out the money from the 457b and pay taxes on it?

We are trying to understand the rules regarding 457(b) retirement accounts when an individual separates from their employer.

Are there any specific requirements or penalties for not withdrawing the funds immediately? Also, does it make a difference if the plan is governmental or non-governmental?

Insights or advice from those familiar with retirement planning would be greatly appreciated.

[Abbie]

457b is my favorite retirement account. When he leaves his job he has access to this account regardless of age without being subject to penalties for early withdrawal.

I wouldn’t recommend rolling it over unless fees are just astronomical.

It’s the best retirement account for FIRE in my opinion.

[Matt]

No. He can just leave it be. Can also open an IRA at say Fidelity and roll it there.

The plan is managed by some 3rd party, not directly by his employer.

[Author]

Posts