Accessing your money before retirement
Your plans were established to encourage long-term savings.
A 457(b) plan has more stringent withdrawal restrictions while you are employed, but less stringent rules after severance from employment, and is not subject to a 10% federal early withdrawal tax penalty except on amounts rolled over from other non-457(b) eligible retirement plans.
The following are distribution events for your 457(b) plan:
- Attaining age 72 (age 70½ if born before July 1, 1949) (if your plan allows in-service distributions)
- Retirement or severance from employment
- Your death
- Unforeseeable emergencies
- Minimum distribution required at reaching age 72 (age 70½ if born before July 1, 1949) or upon retirement, whichever is later
Bear in mind that income taxes are payable upon withdrawal.
Loans are not available in the 457(b) plan.