What is a 457b Rollover?
457b plans are retirement plans that are sponsored by US governmental entities and certain tax-exempt organizations. When you terminate your employment and have assets in a 457b plan, you can elect to transfer or rollover your 457b plan to a Rollover IRA.
Frequently a 457b plan is rolled over into a Rollover IRA via a direct rollover. The assets in your 457b plan can be transferred from your 457b directly to a Rollover IRA via a trustee-to-trustee transfer. A direct rollover from a 457b to a Rollover IRA is made tax-free and there is no tax liability. It is generally to your advantage to choose a direct rollover because your 457b plan administrator will not withhold taxes if you choose this option.
Many investors believe it is advantageous to do a 457b rollover versus leaving their 457b money in their ex-employer's 457b plan or transferring their assets into their new employer's retirement plan.
Advantages of a 457b Rollover to Rollover IRA
- More Control
- Increased Investment Options
- Investment Advice
A significant advantage of a 457b rollover to a Rollover IRA is increased investment flexibility. A client with a BCM Rollover IRA can invest in stocks, bonds, institutional money managers and over 10,000 mutual funds.
Learn more about the advantages of a 457b rollover.