457 withdrawal

Retired drawing pension. Part time employed with $4,000 per year. Can 457 plan be withdrawn. Retired from employer where all funds were earned.

Terry Says:  Well, the first thing you probably should do is a ROLLOVER — directly from your previous employer to a new custodian, probably at Vanguard or Fidelity or T. Rowe Price.  Ask your employer if this type of rollover is allowed by your plan.  Some 457 plans do not allow rollovers.  Here’s a link to a good explanation:  http://www.ehow.com/list_6795641_irs-457-rollover-roth-ira.html.

Check very carefully to make sure with the custodian that this rollover will not trigger a taxable event — as this was all pre-tax money.

If allowed,  contact one of the companies above — and ask them to handle the rollover into a money market fund (at first) so it is all in one place.  Then ask the new custodian –one of these companies — to do a Retirement Income Withdrawal strategy for you using Monte CArlo modeling (either read my book, The Savage Truth, or they will explain.)  That will take a look at your entire financial picture, including pension (and Social Security if your govt job or another employment also gave you those benefits), and set up an investment and withdrawal plan that is most likely to make your money last as long as you do!   Please write back and tell me about your experience (which is a sneaky way of ensuring that you actually DO this!!)