L1: 457(b)I am 50yrs.old.retired in january of this year.I hold a 457(b) deferred compensation account and would like to know if I can use the 72t plan.and how to start it.my plan administrator is not helping willingly(hartford)2009-09-17 16:33, By: tom m, IP: [220.127.116.11]
L2: 457(b)Go to www.457.com for their list-serve on this specialized area.2009-09-17 18:38, By: dlzallestaxes, IP: [18.104.22.168]
L3: 457(b)Since the 457b is not a qualified retirement plan, there is NO early withdrawal penalty, so you do not need a 72t plan. This may explain the administrator’s response.
If the plan allows flexible installments, you can take them without penalty and avoid a 72t plan. However, if the plan will only offer you a lump sum distribution, it will bunch too much taxable income in a single year. In that case, you may need to consider a direct rollover to a traditional IRA, and then set up your 72t plan from the IRA.2009-09-17 21:12, By: Alan S., IP: [22.214.171.124]