457b early distribution

[rls827]

Approved to withdraw from 457 (b) for medical expenses. When applying  for the withdrawal included an estimated invoice from physician for procedure. Procedure ended up costing less than was invoiced. Do I have to return the unused money to the retirement plan or since I've already been taxed can I use it for other things? I am deducting the medical expenses that were paid

[dmertz · Accepted solution]

You cannot return the money to your 457(b) or any other retirement plan.  Hardship distributions are not eligible for rollover.  You must spend it or save it in a non-retirement account however you choose.

[rls827]

Thank you. I didn't want to get in any trouble for not using all of the funds as they were approved for. Wasn't sure if I needed to report that the procedure was a few thousand less than the estimate. Last thing I want is the IRS coming after me! Appreciate your response.