Retired, 56, & getting CalPers pension, in addition I have a 457b qualified plan & want to take withdrawals. Am I required to do SEPP? Or can I make random withdrawals?

Forum|Forum|7 years ago
June 3, 2019
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Best answer by dmertz

SEPP plans are used to avoid early-distribution penalties. To withdraw money from the 457(b) plan that is attributable to original 457(b) contributions and the earnings thereon there is no need to do a SEPP plan because distribution of this money is not subject to early-distribution penalty.

If rolled money over to a 457(b) plan from another type of plan, any of that money and earning thereon are required to have been kept in a separate sub-account and would have to be distributed under a SEPP plan to avoid early-distribution penalties before age 59? unless another exception applies.

Contact your 457(b) plan administrator for details and requirements relative to your particular plan.

dmertzAnswer

Level 15

Contact your 457(b) plan administrator for details and requirements relative to your particular plan.

mktabbertAuthor

Level 2

Thank you VERY much dmertz. Excellent news, I was confusing SEPP with 457(b), whereas SEPP applies to IRAs, 401(k)'s, etc., the additional 10% tax penalty does not apply to 457(b), thankfully, even though I'm only 56. Also all funds I contributed are only attributable to 457(b), no rollovers from other plans. Thanks for the clarification dmertz!