Withdrawing Your 457(b) Funds

If you leave employment, you have several choices regarding your retirement funds:

Choice 1 – Leave your money on account
Generally, you may leave your assets in the plan administered by the Montana Public Employees’ Retirement Administration (MPERA) to grow tax deferred until you reach age 70 ½.

You will need to have left employment (and been paid out all sick and annual leave) for at least 30 days for the following two choices:

Choice 2 – Direct rollover into another eligible plan
You can choose to roll funds of $200 or more into another eligible plan. Be sure to
confirm that the new plan will accept your rollover.

Choice 3 – Take a distribution
If you take a distribution from your account, federal law requires us to withhold 20% of the distribution for federal income tax purposes. State tax withholding may also apply.

Once you take a distribution, you also have the option of rolling it over into an IRA or a qualified employer’s plan. Amounts not rolled over within the 60 day time frame will be subject to ordinary income tax in the year received.

For withdrawal paperwork, please contact Empower Retirement (formerly Great-West Financial) at 1-800-981-2786 (449-2408 in Helena)