AmyC
Expert Alumni

Get your taxes done using TurboTax

Wait, full stop. Transfer is the only option.  if you did a transfer, why are you showing taxable income? If it was not a proper transfer, it would be a  fully taxable distribution. In addition, the receiver must make sure you do not have excess contributions. See Non-Governmental 457(b) Deferred Compensation Plans

 

The rules are:

For nongovernmental 457(b) plans, the only way to defer taxes would be through a direct transfer to another 457(b) plan of a tax-exempt entity [Treas. Reg. 1.457-10(b)]. A 457(b) plan of a tax-exempt entity may provide for transfers of amounts deferred by a participant to another eligible plan of a tax-exempt entity if:

  • the transferor plan provides for transfers;
  • the receiving plan provides for the receipt of transfers;
  • the participant or beneficiary whose amounts deferred are being transferred will have an amount deferred immediately after the transfer at least equal to the amount deferred with respect to that participant or beneficiary immediately before the transfer; and
  • in the case of a transfer for a participant, the participant has had a severance from employment with the transferring employer and is performing services for the entity maintaining the receiving plan.

I am really not sure what you have done to know what you should do. I am concerned you may exceed limits or have gone outside a boundary.

 

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