457 Rollover

A 457 Rollover is better done with the help of expert insurance agents. Many retirement plans have their own rules and specifications. This is normal. But when the decision is made that the participant with the account wants to do a rollover, all these rules must be looked at carefully.

Best Life Insurance agents have much knowledge in 457 plans and the 457 Rollover. This is important because they can sometimes get a little tricky. With these plans, there are more benefits and more that can be done in terms of contribution. This is because of who it is designed for.

So, if you have a 457 account then, you might have some information about the plan. Maybe you got a different job in a different sector or in a different department. Our agents can assist you in the rollover process and have your account in a singular place.

A 457 Rollover deals with an already established 457 retirement plan. With a 457 Rollover, the original or old account is transferred to a new 457 account. This account, in general, is kind of complex but can be very beneficial in the long run.

There are variations of this plan, which can make the rollover process a little complicated. But if you have an insurance agent that understands the plan, they can do it easily. The Best Life Insurance agents are familiar with this plan and can easily assist you with your 457 Rollover. Depending on where you work and the kind of they signed up for, your plan might be eligible for rollover. Most government employees and non-profit plans are 457b plans, and these plans are eligible for 457 Rollover. With this specific plan, you are able to rollover and still contribute without being taxed.

For other 457 plans, like the 457f, the rules are completely different. With this, you want to make sure your insurance agent reads all the rules stated in the original plan. This is because you don’t want to be at risk of losing any of the assets you have gained.

Overall, the 457 Rollover process can be one that can go over smoothly. Participants still get the opportunity to gain more and contribute part of their salary.

Who is a 457 Plan For?

The 457 plan is designed for firefighters, state employees, federal employees, officers, and non-profit employers. It can be offered by the state or federal government or that non-profit business. As long as you are working in these places, then you qualify for this plan. The reason that this plan is made for these specific employees is because there are certain benefits, compensation, and tax advantages that the plan participates in. It is a way to compensate for the service that you do and put that towards your retirement.

The 457 plan is similar to the other kinds of retirement plans, except for the fact that it is catering to a different audience. A certain amount of their salary is set aside for this plan, and no tax needs to be paid on it until it’s they decide to withdraw. These plans are best rolled over and basically always rolled over to another 457 accounts. It just might be with a different insurance company like us.

When you do a 457 Rollover with us at Best Life, your new 457 account has a built-in floor. This means that you don’t have to worry about where the market is. You have a starting base and continue from there. In addition to that, your account increases with the market. So, when there are gains in the market, your account participates in these gains.

This is also true of the interest that is accumulated in this plan. As you make your contributions and the market gets better, you still have interest that is adding to your account. Many people like to hear this because they are getting much added into their account at the end of the day, and that means more money than they can withdraw when they retire.

Contribution and Rules

Like 401ks and 403Bs, participants can contribute to their 457 plans. The restrictions for this are a little different than the others, though. It is a little more lenient, and more can be added to it than others. The maximum contribution does change year to year, so you want to ask your insurance agent what the new contribution amount is every year.

Participants can contribute up to 100% of their salary if they would like, as long as it does not go past the maximum contribution limit.

Something that is kind of interesting about this plan is after the age of 50; the contribution amount increases by a couple of thousand dollars. This is a catch-up contribution for those who have not withdrawn yet.

In addition, you should be aware that there needs to be a withdraw from the account by the age of 72. It doesn’t need to be the whole amount, but at least the minimum needs to be withdrawn. This is just a rule that is there to make sure your money is not just sitting. It’s for retirement, so once you retire, you can be withdrawing from it. The minimum age to start withdrawing is 59 ½, like other plans.