Section 457 Plans are exempt from ERISA and distributions may NOT be rolled into an IRA.

Section 457 Plans are exempt from ERISA and distributions may NOT be rolled into an IRA.

• A. True
• B. False
• C. Distributions may be rolled into an IRA
• D. They are only for churches

Answer: (A)

Section 457 plans are not governed by ERISA because they are typically governmental or certain nonprofit plans. Because they operate outside ERISA, distributions from a 457 plan are not eligible rollover distributions to an IRA. In other words, you can take the distribution or roll it to another eligible 457 plan, but you cannot roll it into a traditional IRA. This is why the statement is true.

Section 457 plans are not governed by ERISA because they are typically governmental or certain nonprofit plans. Because they operate outside ERISA, distributions from a 457 plan are not eligible rollover distributions to an IRA. In other words, you can take the distribution or roll it to another eligible 457 plan, but you cannot roll it into a traditional IRA. This is why the statement is true.