Thanks, @dmertz , for the clarification. I admit to have been guided by IRS Tax Topic 413 which states that inter alia "A trustee-to-trustee transfer isn't a rollover ", although I could have read that too closely.
Upon further reflection, I looked at the IRS Instructions for the 1099-R and 5498. Unless I missed it (possible) every reference to 457 plans and the 1099-R is about distributions from a 457, not to the 457, as in this case. Note that the distribution from a 457 can be hybrid animal, a direct rollover. "A direct rollover is the direct payment of the distribution from a qualified plan, a section 403(b) plan, or a governmental section 457(b) plan to a traditional IRA, Roth IRA, or other eligible retirement plan."
The only place in the instructions that appears to relate to the current question is at the code table on page 17. For code "G" in box 7, it reads,
"Use Code G for a direct rollover from[emphasis mine] a qualified plan, a section 403(b) plan, or a governmental section 457(b) plan to an eligible retirement plan (another qualified plan, a section 403(b) plan, a governmental section 457(b) plan, or an IRA). See Direct Rollovers, earlier. Also use Code G for a direct payment from an IRA to an accepting employer plan[emphasis mine], and for IRRs that are direct rollovers".
So if the 457 is an employer plan (if the government is your employer?), then this text is the only text that I have found that justifies a 1099-R with a code of G and the phrase "direct rollover". Are there other places I could look to read up on this?
