Click Here to Find Your Aspire Team

Our objective is to make life easy for all retirement plan stakeholders. We do our best to thoroughly explain the features and benefits of our smart retirement solutions. Sometimes, you may still have a question. Click on these Frequently Asked Questions (FAQs) to get the information you need to understand why smart retirement solutions are best in class. 

  • Can I take a withdrawal from a 457 account?
    Generally, funds may be withdrawn in the case of “extreme financial hardship” or in the event of an “unforeseeable emergency.” This right is subject to the employer’s plan rules specified in the plan document. An advantage to the 457 plan is that it is not subject to the age 59 1/2 withdrawal rule; therefore, there is no early withdrawal penalty at retirement or upon termination of employment.
  • Do I have to take a distribution from my 457 account?
    Required Minimum Distributions (RMD) must start by April 1 of the year following the year in which you reach age 70 1/2.
  • What are my options if I change jobs?
    An employee’s options when switching jobs are: - 457 money can be moved into the new employer’s 457, 403(b) or 401(k) if the plan accepts such transfers, or into a Rollover IRA - Public (governmental) plan 457 money is not subject to the age 59 1/2 withdrawal restriction, so money can be withdrawn (subject to income tax on the full amount) without incurring a 10% early withdrawal penalty - Leave the money where it is, if the plan allows Please note that if you roll governmental 457 money into a 403(b), 401(k), IRA or any other plan (other than a 457 plan), you will lose the benefit of taking premature withdrawals without penalty. Conversely, if you roll 403(b) money into a 457 plan you do not avoid the 10% early withdrawal penalty. The plan provider or sponsor is required to account for this money separately.
  • Can I roll my retirement plan account into a Traditional IRA?
    Qualified retirement plans, such as 401(k), 403(b) and 457 plans, can be rolled into a Traditional IRA. However, the rollover should be identified as such in the account.
  • Can I roll my Traditional IRA into a qualified plan account?
    Yes, a Traditional IRA can be rolled over into a qualified plan, assuming the qualified retirement plan has language permitting such rollovers.
  • Do I have to take a distribution from my Traditional IRA?
    Yes. Required Minimum Distributions (RMD) must start by April 1 of the year following the year in which you reach age 70 1/2.
  • Do I have to include distributions from my Roth in my gross income?
    Generally, Account holders do not include qualified distributions or distributions that are a return of their regular contributions from their Roth IRA in their gross income. They also do not include distributions from their Roth IRA that they roll over tax-free into another Roth IRA. They may have to include part of other distributions in their income if certain criteria are not met.
  • Can I make a withdrawal from an SIMPLE IRA? If so, is there a penalty?
    The same rules and penalty exceptions apply as in a Traditional IRA except that the penalty is 25% if the money is withdrawn within the first 2 years from the date you began participating. State penalties may also apply. Also keep in mind that money withdrawn in the first 2 years cannot be rolled over to any retirement account or plan except another SIMPLE IRA.
  • Will I be required to take distributions from my SIMPLE IRA?
    Required Minimum Distributions (RMDs) must start by April 1 of the year following the year in which you reach age 70 1/2.
  • Can participants take a withdrawal from their SIMPLE IRA account? If so, is there a penalty?
    The same rules and penalty exceptions apply as in a Traditional IRA, except that the penalty is 25% if the money is withdrawn within the first two years from the date you began participating. State penalties may also apply. Also keep in mind that money withdrawn in the first two years cannot be rolled over to any retirement account or plan except another SIMPLE IRA.
  • Will participants be required to take distributions from their SIMPLE IRA?
    Required Minimum Distributions (RMD) must start by April 1 of the year following the year in which a participant reaches age 70 1/2.
  • Will I be required to take distributions from my SEP IRA?
    Required Minimum Distributions (RMD) must start by April 1 of the year following the year in which you reach age 70 1/2.

Follow Us

Sign Up for

Aspire News

Access Our

InvestDesign Center