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I am a firefighter and I am looking to transfer my money from

Customer Question
a 457 to an IRA...
I am a firefighter and I am looking to transfer my money from a 457 to an IRA or 401k. What I am trying to do is withdraw funds w/o penalty (or at all) to pad my first time homebuyer downpayment. My 457 providers tell me I cannot do this or transfer funds at all. Is there anyway I can get around this w/o meeting emergency guidelines?
Submitted: 8 years ago.Category: Tax
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Answered in 11 minutes by:
8/3/2009
Tax Professional: Merlo, Accountant replied 8 years ago
Merlo
Merlo, Accountant
Category: Tax
Satisfied Customers: 9,783
Experience: 25+ years tax consulting. Specializing in returns for US citizens living abroad
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Hello Customer,

Actually, withdrawals that you make from a 457 plan are never subject to an early withdrawal penalty, regardless of what age you are when the funds are withdrawn. They do not function in that manner the same as an IRA or 401k plan.

However, these types of plans still only allow you to make withdrawals in the following situations:

1. When your retire
2. When you leave your job, for any reason
3. During unforeseeable emergency circumstances

Unforeseeable emergency is defined as a severe financial hardship resulting from a sudden illness, disability or accidental property loss, subject to strict IRS guidelines.

Funds that you withdraw from a 457 plan for any reason are not eligible for rollover to an IRA plan.

Unless you would retire or leave your job or meet one of the criteria for an unforseen emergency, withdrawals from this plan would not be allowed.

If this was helpful please press the Accept button. Positive feedback is also appreciated.

Thank you Customer, and let me know if you have more questions. I am happy to help you with whatever I can, although I realize you wish I could have given you better news.



Merlo
Merlo, Accountant
Category: Tax
Satisfied Customers: 9,783
Experience: 25+ years tax consulting. Specializing in returns for US citizens living abroad
Verified
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