KevinMD.com - Navigating your 457 plan

Shane Tenny, CFP®, partnered with KevinMD.com to discuss what to do with a 457(b) plan if you are changing jobs as a physician.

If you have a 457(b) plan – especially a non-governmental one – it’s essential to understand what happens afterward. Unlike a 401(k), non-governmental 457(b) plans often cannot be transferred to an IRA or your new employer’s plan. In some cases, the entire balance must be withdrawn shortly after you leave, resulting in a significant and unexpected tax burden.

Before making a move, review your plan documents carefully and consult your plan administrator. Strategic planning, such as spreading distributions across tax years or maximizing contributions with your new employer, can help reduce the tax impact. A financial advisor can help you make the most of your next step.

Check out the article on KevinMD.com here > KevinMD.com- Navigating your 457 plan: key steps for physicians changing jobs