59 and a half years old
Money saved in a 457 plan is designed for retirement, but unlike 401(k) and 403(b) plans, you can take a withdrawal from the 457 without penalty before you are 59 and a half years old. This is a very important rule that often times goes overlooked with the 457 plan.

When can you start withdrawing from a 457 plan?

59½
Unlike other retirement plans, under the IRC, 457 participants can withdraw funds before the age of 59½ as long as you either leave your employer or have a qualifying hardship. You can take money out of your 457 plan without penalty at any age, although you will have to pay income taxes on any money you withdraw.

Can you take regular withdrawals from a 457 plan?

Looser restrictions now allow more employers to offer 457 plans in addition to other retirement plans. Unlike 403(b) and 401(k) accounts, participants can take regular withdrawals from 457 plans as soon as they retire, regardless of whether they have reached age 59½.

What do you need to know about a 457 ( b ) plan?

1 A 457 (b) plan is an employer-sponsored, tax-favored retirement savings account. 2 With 457 (b) plans, you contribute pre-tax dollars, which won’t be taxed until you withdraw the money. 3 A 457 (b) retirement plan is much like a 401 (k) or 403 (b) plan.

Can a 457 plan be rolled over to a traditional IRA?

You can roll over funds in your governmental 457 (b) plan to a traditional IRA, 401 (k), 403 (b), or another 457 governmental plan. 3  The rules for 457 (b) plans at a private tax-exempt organization are much more restrictive. Your funds in such a plan can only be rolled over into another non-governmental 457 plan.

How do you cash out a 457b plan?

Distribution Process. If you qualify for a 457(b) distribution, you’ll have to contact your plan administrator and complete the appropriate paperwork to cash out your plan. After providing personal information such as your Social Security number, name and address, you’ll have to indicate why you are qualified to take a distribution.