Non Governmental 457(b) rolled into another non governmental 457(B)

Forum|Forum|5 years ago
February 3, 2021
9 replies
29 views

I have a situation where an individual received a distribution from a non governmental 457(B) in December 2020 and then rolled it into a new employers non governmental 457(B) plan within the 60 day limit but in 2021. The original 457(B) plan issued a W-2 to the taxpayer for 2020. it is my understanding that the taxpayer can roll this over from one non governmental plan to another without generating a tax bill, but how do i reflect this on the 1040

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qbteachmt

Level 15

Here:

https://www.irs.gov/help/ita/do-i-need-to-report-the-transfer-or-rollover-of-an-ira-or-retirement-plan-on-my-tax-return

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M

MDetletAuthor

Level 2

Hi Thank you for the reply, but the issue here is that the original distribution was reported on a W-2 and

not a 1099-R

B

biancas80

Level 2

I have the same situation. Did you ever get a response? phone support was not helpful.

M

MDetletAuthor

Level 2

Hi

unfortunately i did not get a reply on this

qbteachmt

Level 15

My understanding of this sort of plan is they are holding an unfunded plan account; when you leave, that is a distribution, and it can't be rolled into another plan account that also is supposed to be unfunded. And the rolled over part would be held in a separate account from the new employer's account for this individual, since this came over as funds. That's why they are called Top Hat plans.

Do you have an IRS reference for this statement: "it is my understanding that the taxpayer can roll this over from one non governmental plan to another without generating a tax bill,"

I would enter the W2 as shown; which should show this was taxed already.

Don't yell at us; we're volunteers

B

biancas80

Level 2

I ended up reporting it with no rollover. I did find an IRS table that says it cannot be rolled over from a non governmental plan. See link, third line from the bottom. This is in contradiction from several other sources online that are not IRS. It is also the ONLY IRS source I could fine that addresses it. Very obscure stuff.

https://www.irs.gov/retirement-plans/comparison-of-tax-exempt-457b-plans-and-governmental-457b-plans

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