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Ask The Expert: Converting to a Roth

Q: I have a 457 through my employer. Am I able to convert these fund over to a Roth IRA?
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A:

As you're aware, a 457 plan is a non-qualified retirement plan for public-sector employees.

 If you are withdrawing money from the 457 plan you will be able to take penalty-free withdrawals.  If  the funds are contributed or rolled over to the Roth, however, it would be taxed as ordinary income.  The Roth IRA would be valuable for tax-free growth and withdrawals but you do need to consider the taxation of the 457 monies.  Make sure to discusss this with your tax advisor.

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