Link to post Share on other sites . If you move the funds from a 457 into another 457, this will be a nonissue. The main benefit of using a 457b plan is you basically get another 401K/403B. Unlike other types of retirement plans, such as IRAs, you can't take a distribution from a 457(b) plan whenever you would like, even if you're willing to pay a penalty. The IRS has also published a handy chart that explains the rules for 457 plans sponsored by governments and those sponsored by tax-exempt organization, including how … 9937, the IRS finalized proposed rules addressing the amendments to Sec. Quote; Share this post. ��j1��Fq�ɱa"��a}n5��DN��Ǩš&�CGT!�E�7��K4����� IL������ ��H�`&b�%�q�۶k'�k�/ۿU�c���1�+: Author(s): Carol V. Calhoun Published on 2/18/2002 in Benefits & Compensation Law for Nonprofits . The Custodian is required to provide As long as the withdrawal rules are obeyed Roth IRA withdrawals are tax-free. ضIДZ�)lld�=Z� �5����sGS_K_+_k__[_'M-���>�� �Ox}��N��w��sg��O��W��Y|ZV�Y�!���\�"�&�1��٪��H���RʈR���lT*)�o�e]=��˴ʊ��x��F����}�ȼ(��䤁��TLE�Hf"�"KhN&��Ȫ! Federal tax law requires that most distributions from governmental 457(b) plans that are not directly rolled over to an