EGTRRA Impact on 457 Plans
EGTRRA Impact on 457 Plans
As you may be aware, several significant changes have taken place regarding your King County Deferred Compensation 457 Plan. As a result of the Economic Growth and Tax Reconciliation Act of 2001 (EGTRRA), your distribution options have expanded to include rollovers to individual retirement accounts (IRAs) or other employer retirement plans, effective January 1, 2002. Even if you have already made your "irrevocable" distribution election, you can now change the amount or manner of your distribution and/or rollover your account into a traditional IRA of your choosing, whereby you can access a much broader scope of investment and savings options.
This is great news!! These new provisions have been long awaited -- since at least 1993. You should have received a notice by now from T. Rowe Price regarding these enhancements to your 457 Plan whereby the details of the six new options are given. This means that once you begin taking distribution (or if you have already begun distribution -- excepting the purchase of an annuity), you now have much greater flexibility to make changes as your financial needs may change over time.
In light of these new options, we would be happy to meet with you to explore how you can best utilize the new provisions. Feel free to contact us at (425) 462-2980 to schedule an appointment (free of charge).
