When can employee distributions from a 457 plan begin?
Withdrawal regulations make Section 457 plans unique among public pension plans. Because the 457 is not a qualified retirement plan, participants may receive distributions regardless of age without penalty since there is no “premature distribution” penalty, as there is with a 401(k) or regular IRA account when funds are withdrawn prior to age 59 1/2. Of course, taxes are due upon receipt of the funds.
