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Distributions to a participant or former participant during a taxable year under a 457(b) plan are reported on Form W-2, Wage and Tax Statement, in the manner described in the instructions to that form. See also Rev. Rul.
If eligible for the 3-Year Catch-up provision, you may qualify to contribute up to twice the regular annual contribution limit during the three years prior to, but not including, the year you will reach normal retirement age.
Cons of 457(b) plans: Fewer investing options than 401(k)s (Not as common today) Only available to certain employees employed by state or local governments or qualifying nonprofits. Employer contributions count toward the annual limit. Non-governmental 457(b) plans are riskier.
Who can establish a 457(b) plan? The organization must be a state or local government or a tax-exempt organization under IRC 501(c).
One-Time Withdrawals This payment is immediately taxable (see the note below) and is subject to mandatory 20% federal income tax withholding. State income tax withholding may also apply. Complete section 2 of the 457 Basic Withdrawal form.

People also ask

But with a 457b, as long as you are no longer with your employer, there is no 10% penalty for early withdrawal. Even if youre working for a different employer. You will still pay income tax on it, but no additional penalty.
About 457 Plans 457(f) plans: These are ineligible deferred compensation plans that dont satisfy one or more of the statutory requirements applicable to 457(b) plans, often by exceeding the amount that may be deferred under the plan.

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