457 Plan Transaction Instructions

Loan:


Many 457 Service Providers allow for participants to take a loan against the assets held in their plan. If your Service Provider allows for loans, you will start the process by contacting them directly to request this transaction. It is important to note that Loans will need to be repaid (often with interest). Your Service Provider will work with you to decide on the technicalities of your loan, including the manner in which it will be repaid.

After completing your Service Provider’s Loan Paperwork, fax it along with our 457 Loan Request Form to the Tax Deferred Solutions Service Provider Team at (916) 221-5040. In some cases, original paperwork may need to be submitted. After verifying your eligibility to receive a loan, Tax Deferred Solutions will sign off on your transaction, and forward it directly to your Service Provider so that your funds may be issued.

Unforeseeable Emergency Withdrawal:


This is a distribution of funds from your 457 account due to severe financial need. Four circumstances are deemed by the IRS to constitute a severe need: Other requirements particular to an Unforeseeable Emergency Withdrawal are: Your employer has hired Tax Deferred Solutions to authorize Unforeseeable Emergency Withdrawals from its 457 plan. Accordingly, Tax Deferred Solutions only approves distributions meeting one of the four categories and requires supporting documentation. Particular requirements and examples of supporting documentation for each of the categories are listed below.

1. Medical expenses for the employee or his/her spouse or dependents
REQUIREMENTS:
Expenses must not be covered by insurance. If the participant is not the recipient of the medical care, documentation showing the relationship must be provided (e.g. copy of federal tax return; marriage certificate)
SUPPORTING DOCUMENTATION:
- Medical bill dated within the last 3 months showing the amount due
- Explanation of benefits from your insurance company dated within 3 months
- Notice from collection agency dated within 3 months
- Estimate of treatment costs from your doctor dated within 3 months

2. Payments necessary to prevent eviction from or foreclosure on a primary residence
REQUIREMENTS:
The eviction date or date for payment must not have passed
SUPPORTING DOCUMENTATION:
- Eviction notice showing the monthly rental amount and amount necessary to prevent eviction
- Notice of delinquency showing the amount of past due rent
- Foreclosure notice from the mortgage company showing the amount needed to reinstate the mortgage
- Notice from the mortgage company showing the amount past due in mortgage payments and payment deadline to avoid foreclosure
- Court order indicating foreclosure and an amount that is necessary to prevent foreclosure and payment deadline date
- Letter from an attorney indicating the amount necessary to reinstate the mortgage or redeem the property and payment deadline date

3. Burial or funeral expenses for the employee’s parent, spouse, or dependents
SUPPORTING DOCUMENTATION:
- Documentation demonstrating the relationship must be provided (e.g. copy of death certificate; copy of federal tax return; copy of participant birth certificate )
- Statement from the funeral home showing the related costs and services
- Statement from the cemetery for burial costs

4. Repair of damage to the employee’s principal residence
REQUIREMENTS:
Expenses must be for the repair of damage caused by an event that is sudden or unexpected. (Home improvements do not qualify)
SUPPORTING DOCUMENTATION:
- Contractors estimate or bill showing the cause of damage and cost of repair and dated within the last 3 months
- Explanation of insurance benefits showing any repairs not covered by insurance

All Unforeseeable Emergency Withdrawal requests must be accompanied by the 457 Unforeseeable Emergency Withdrawal Request Form.

Transfer:


This refers to the transfer of your 457 assets from a plan under a former employer to that of your current employer. As with a rollover, you will want to obtain paperwork or a Letter of Acceptance from your receiving vendor (who must be on your current employer’s list of participating vendors), to initiate this transaction.

After contacting your sending provider to obtain any paperwork that may be required, fax the completed documents to Tax Deferred Solutions's Service Provider Team at (916) 221-5040. In some cases, original paperwork may need to be submitted.

Rollover:


In the event that you are moving funds from another form of tax sheltered retirement savings account, such as a 401(k) or IRA, to your 457 plan your first step will be to establish a 457 plan with one of your employers Participating Providers. After establishing your plan, obtain your receiving vendor’s rollover paperwork, or obtain a Letter of Acceptance (LOA) indicating their ability to accept your funds.

After contacting your sending provider to obtain any paperwork that may be required, fax the completed documents to Tax Deferred Solutions's Service Provider Team at (916) 221-5040. In some cases, original paperwork may need to be submitted.

Qualified Domestic Relations Order (QDRO):


A Qualified Domestic Relations Order (QDRO) is a court order necessary for the distribution of a participant’s account to a former spouse. A QDRO is commonly separate from a judgment of divorce, and provides the specifics of how the funds are to be divided.

Tax Deferred Solutions will review the court order to ensure compliance with applicable regulatory requirements. Upon approval of the court order, Tax Deferred Solutions will forward its findings to the distributing service provider(s) and all other parties involved. TDS also reviews drafts of orders prior to submission to a judge for signature in an effort to facilitate a smooth transaction once the signed order is submitted to Tax Deferred Solutions for approval. Please note the service provider(s) may require additional paperwork to complete the transaction and an original or certified copy of the court order.

Court orders may be sent via fax to Tax Deferred Solutions's Service Provider Team at (916) 221-5040 or mail to 6939 Sunrise Blvd, Suite 250, Citrus Heights, CA 95610.

Exchange:


This refers to the transfer of your 457 assets from one 457 Service Provider to another of your employer’s participating providers. As with a rollover, you will want to obtain paperwork or a Letter of Acceptance from your receiving vendor (who must be on your current employer’s list of participating vendors), to initiate this transaction.

After contacting your sending provider to obtain any paperwork that may be required, fax the completed documents to Tax Deferred Solutions's Service Provider Team at (916) 221-5040. In some cases, original paperwork may need to be submitted.

Death Claim:


In the unfortunate event that you are the beneficiary of a deceased 457 participant, you may want to obtain a distribution from the plan in question. Start by contacting the deceased’s Service Provider to request a distribution as the beneficiary of the plan- if possible, be prepared to supply the Service Provider with a Certificate of Death.

After obtaining the necessary paperwork from the 457 Service Provider, please fax the completed documents along with an original Certificate of Death to Tax Deferred Solutions's Service Provider Team at (916) 221-5040. In some cases, original paperwork may need to be submitted. Tax Deferred Solutions will review the transaction, and after completion it will be forwarded to the Service Provider who will in turn issue funds to the beneficiary.

Distribution:


IRS regulations allow for any individual who is 70 1/2 years of age (or 59 1/2 depending on your plan's features) and OR separated from service to withdraw funds from their 457 plan. If you meet these criteria, your first step will be to contact your 457 service provider to request a distribution. After completing your Service Provider’s distribution paperwork, fax the completed documents to Tax Deferred Solutions's Service Provider Team at (916) 221-5040. In some cases, original paperwork may need to be submitted.

Tax Deferred Solutions will verify any necessary information with your current or former employer before authorizing your transaction and returning it directly to your 457 Service Provider for payout. Typical turn around times for this transaction are between five and eight business days. If at any point you would like a status update on the progress of your distribution, feel free to contact Tax Deferred Solutions's Customer Care Team at (866) 446-1072.