I changed jobs midway through 2023. My old employer had a nongovernmental 457b plan which I was contributing to. My new employer does not have this and so I was required to take a lump-sum distribution from the 457B plan. I received only a W-2 form for these distributions and did not get a 1099-R. My question is, is this correct, and would I need to pay any penalties for the early distribution from my 457b from when I changed jobs?
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This IRS FAQ states:
Contributions to a funded plan are immediately taxable to the participants. Contributions to 457(b) plans may include employee salary deferrals and employer contributions. The contributions are reported on Form W-2.
You may take penalty-free withdrawals from your 457 account at any age after you leave your job.
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