This video discusses important information about 457(b) rollover rules, the option to roll over into various types of retirement accounts, navigating bureaucracy and avoiding tax penalties in the rollover process, the importance of contributing to a retirement plan as a public employee, the benefits of consulting a financial adviser for retirement planning, the role of Social Security as a supplement to retirement funds, and recommends the use of a questionnaire in the video description for retirement plan insights. It also encourages viewers to check out other retirement topic videos for additional information.

Take the Retirement Quiz:

Voiceover
Welcome to part three of our 457(b) Plan insight videos! In this video, we are going to discuss some of the Rollover Rules for a 457(b) Account.
You can roll over a 457(b) into any other retirement account. The IRS breaks down what types of accounts you can roll over into what.
For a 457(b) account, you can roll it over to pretty much any type of IRA account, a qualified plan or a 403(b) account. You cannot roll it over into a Roth account that isn’t an IRA (such as a Roth 401(k)). To roll over the account to a Simple IRA, you would need to wait two years.
If you’re looking to complete a rollover, pick a new plan and ask the new provider to give you tips on how to initiate the rollover. Your new provider will be able to help you navigate the bureaucracy that comes with getting your money and rolling it over. More importantly, by doing this, you should be able to avoid all tax penalties.
Ok, so let’s go over the bottom line of all this. If you’re a public employee and have access to a retirement plan, you should be making contributions to save for the future. If you’re choosing between a 457(b) and 403(b), consider the pros and cons of each before making your decision – or opt to contribute to both. And don’t forget that you can still open a Roth IRA on your own time.
Planning for retirement is a long and arduous process, so the help of a professional could be valuable. Finding a financial advisor can benefit you in determining what path is best for you. Most retirees would have trouble living off of Social Security payments alone. However, Social Security affords you extra income that can help round out your overall retirement funds.
Thank you for joining us for the final 457(b) Plan video and remember to join us for our other retirement topic videos!

About Pathfinder Retirement
At Pathfinder, we are dedicated to helping individuals achieve their retirement goals and realize the secure and fulfilling retirement they’ve envisioned. Our video resources and seminars provide valuable insights into financial and retirement planning. We offer a range of resources specifically tailored for federal employees, addressing key topics such as 401k, Roth IRA, and more. Additionally, our general retirement videos cover crucial subjects to provide comprehensive retirement planning assistance.

We take pride in our success stories, where clients have highlighted the support and guidance they received from Pathfinder in retirement planning. Their testimonials underscore the reassurance, expert advice, and assistance with investment decisions that we offer.

Our approach to retirement planning involves an assessment quiz, personalized meetings, and tailored plans, all centered around integrity, expertise, and compassionate service. At Pathfinder, our goal is to empower career federal employees across the US with free digital seminars and personalized solutions, blending integrity, compassion, and service to provide a unique retirement experience.

We also offer a retirement assessment quiz to help individuals determine their readiness for retirement and receive tailored guidance on achieving their retirement goals. At Pathfinder, it’s not just about funds – it’s about securing your future….(read more)

LEARN MORE ABOUT: Qualified Retirement Plans

REVEALED: How To Invest During Inflation

HOW TO INVEST IN GOLD: Gold IRA Investing

HOW TO INVEST IN SILVER: Silver IRA Investing

Part 3: Rollover Rules for 457(b) Accounts

In our previous articles, we discussed the basics of 457(b) plans, the contribution limits, and the investment options available. In this article, we will explore the rollover rules for 457(b) accounts, including the options available for employees who are changing jobs or retiring.

A 457(b) plan is a type of employer-sponsored retirement plan typically offered to employees of state and local governments, as well as some tax-exempt organizations. Like other retirement accounts, such as 401(k) or 403(b) plans, 457(b) plans allow employees to save for retirement on a tax-deferred basis.

When it comes to rollover options, employees with a 457(b) plan have several choices when they leave their current employer. Here are the most common options:

1. Leave the money in the 457(b) plan: For employees who are happy with the investment options and fees in their current 457(b) plan, leaving the money in the plan may be a good option. However, it’s important to note that some plans may require a minimum balance to remain in the plan after leaving employment.

2. Roll the money into a new employer’s 457(b) plan: If the new employer offers a 457(b) plan, employees may be able to roll their existing 457(b) account into the new plan. This option allows for continued tax-deferred growth of retirement savings without incurring any immediate tax implications.

3. Roll the money into an IRA: Another option for employees leaving their current employer is to roll their 457(b) account into an individual retirement account (IRA). This provides more investment options and flexibility in managing retirement savings. However, it’s important to be aware of any potential tax implications of moving the money into an IRA.

It’s important to note that any withdrawal of funds from a 457(b) plan is subject to ordinary income tax, regardless of the employee’s age. Additionally, if the withdrawal occurs before the age of 59 1/2, a 10% early withdrawal penalty may apply. Therefore, employees should carefully consider the tax consequences and their retirement goals before making any decisions regarding their 457(b) accounts.

It’s also worth mentioning that the rules for 457(b) rollovers may vary depending on the specific plan, so it’s important for employees to consult with their plan administrator or a financial advisor before making any decisions.

In conclusion, employees with a 457(b) plan have several options when it comes to managing their retirement savings after leaving their current employer. Whether they choose to leave the money in the plan, roll it into a new employer’s plan, or move it into an IRA, it’s important to consider the tax implications and long-term retirement goals before making any decisions. Consulting with a financial advisor can help employees make informed choices about their 457(b) accounts.