Help beyond traditional 401(k) plans
403(b), 457 & Pension Rollovers
Review your plan choices in a no-cost consultation.
Help beyond traditional 401(k) plans
Review your plan choices in a no-cost consultation.
The biggest rollover mistakes outside the 401(k) world come from treating every plan the same. A governmental 457(b) has no 10% early-withdrawal penalty after you separate — at any age — and rolling it into an IRA permanently trades that away. Many 403(b)s hold annuity contracts with surrender charges that a transfer can trigger. And a pension lump-sum election is a one-time, irrevocable choice that usually requires your spouse’s notarized consent.
Utah State University, the school districts, Logan Regional, and Cache Valley’s city and county employers all use these plan types — so we see them constantly. Bring the plan paperwork to a no-cost consultation and we’ll map which rules apply to yours before anything moves.
After separation, withdrawals face ordinary income tax but no 10% penalty at any age — 457(b)s sit outside IRC §72(t). Roll the money into an IRA and future withdrawals join the penalty regime until 59½. Anyone who might retire early should think hard before merging a 457 away.
Top-hat plans at nonprofits cannot be rolled to an IRA at all — only to another non-governmental 457(b), and distributions follow the plan’s schedule. The money also legally remains the employer’s asset until paid, exposed to its creditors. Know which kind you have before planning anything.
Tax rules track the 401(k) closely (Rule of 55 included), but many 403(b)s — especially older school-district accounts — are annuity contracts with surrender charges a transfer can trigger. Get the surrender schedule in writing before requesting any exchange or rollover.
Monthly annuity payments can’t be rolled over; an offered lump sum can — direct to an IRA, avoiding the 20% withholding a cash payment triggers. The annuity-vs-lump-sum election is permanent, requires spousal consent (QJSA rules) if you’re married, and most private pensions carry PBGC insurance worth weighing in the comparison.
Simplified from the IRS Rollover Chart — the plan document always governs, and “yes” assumes a direct rollover of eligible money:
| → Traditional IRAtax-deferred, you choose it | → New employer’s planif it accepts roll-ins | → Roth IRAtax-free later, taxed now | |
|---|---|---|---|
| 401(k) / 403(b), pre-taxThe standard case | ✓Yes | ~Yesif the plan accepts roll-ins | ~Yes — taxablea conversion; income that year |
| Governmental 457(b)The penalty-free one | ~Yes, but…future withdrawals gain the 10% penalty regime | ~Yesif accepted | ~Yes — taxablea conversion; income that year |
| Non-governmental 457(b)The restricted, top-hat one | ✗No | ✗Non-gov 457(b) onlyno other destination allowed | ✗No |
| Pension lump sumA one-time, irrevocable election | ✓Yesdirect rollover avoids 20% withholding | ~Yesif accepted | ~Yes — taxablea conversion; income that year |
| Roth 401(k) / 403(b)Already after-tax money | ✗NoRoth destinations only | ~Yesto another Roth account, if accepted | ✓Yes — tax-freeit’s already Roth |
Swipe to see all destinations
The initial consultation is $0. Direct rollovers of eligible pre-tax money are tax-free; conversions to Roth are taxable in the conversion year — estimate those with the conversion calculator.
We begin by identifying the actual retirement plan rather than applying ordinary 401(k) assumptions to every account.
Some pension decisions may be difficult or impossible to reverse, making careful review especially important.
We can look at 403(b), 457, pension, IRA, and other retirement benefits together when they are part of the same retirement transition.
Have a 403(b), 457 plan, pension, or combination of retirement benefits? Start with a no-cost review of your available choices. Schedule your no-cost consultation →
Prefer to talk? Call 435-291-5444.
Request your no-cost consultation
Tell us how to reach you — we’ll follow up within one business day.
We review your statements and benefit documents to determine what kind of retirement plan or pension benefit you have.
We look at the distribution, rollover, income, or survivor choices described by the plan.
When alternatives are available, we compare their features, costs, taxes, and practical differences.
Tax, legal, pension, or benefit questions may warrant input from another qualified professional before an election is made.
If you decide to proceed, we help you understand the paperwork and coordination required by the plan and receiving provider.