Tax Facts

4011 / When may rollover contributions be made from an IRA to an IRC Section 457 plan?



An individual may receive a distribution from his or her traditional IRA and within 60 days roll it over into an eligible Section 457 governmental plan to the extent that the distribution would be includable in income if not rolled over.1 The Section 457 plan must agree to separately account for the funds.2 After-tax contributions including nondeductible contributions to a traditional IRA may not be rolled over from a traditional IRA into an eligible Section 457 governmental plan.3

The IRS may waive the 60-day rollover requirement if failure to waive it would be against equity or good conscience, including upon the occurrence of a casualty, disaster, or other event beyond the reasonable control of the individual subject to the requirement ( Q 4016).4





1.  IRC §§ 408(d)(3)(A), 402(c)(8)(B)(v).

2.  IRC § 402(c)(10).

3.  IRC §§ 402(c)(2), 457(e)(16).

4.  IRC § 402(c)(3); Rev. Proc. 2003-16, 2003-1 CB 359.


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