How to Obtain Benefits

Termination of Employment

You cannot obtain benefits any sooner than when you terminate employment. You must finalize your payment election within 120 days of the date your employment terminates. If you do not make an election within 120 days of termination of employment, your 457(b) Savings Plan account will automatically be paid to you as a single lump-sum payment. Within the 120-day window you may elect to:

  • Receive your payment as a single lump sum payment.
  • Receive your payment in substantially equal annual installments over a duration of two to five years.
  • Defer your payment to a later date (you can make one change to your election prior to your elected distribution date).
  • Transfer your balance to another 457(b) non-qualified savings plan.

Minimum Required Distribution

If you reach age 73 and are still actively working you are not required to take a Minimum Required Distribution (MRD). The Plan rules require that MRDs begin at the later of age 73 or separation from service.


IRS rules do not permit rollovers from your 457(b) Savings Plan account to any other qualified plan, such as a 401(k) or 403(b) plan, or an Individual Retirement  Account (IRA).


IRS rules do not permit you to take a loan against your 457(b) Plan account.

Hardship and In-Service Withdrawals

Hardship and other in-service withdrawals are not permitted under the Plan.

Qualified Domestic Relations Orders

Generally, no one can claim your 457(b) Savings Plan account (except in the limited instance of the Plan sponsor’s insolvency), and you cannot give or sell your 457(b) Savings Plan account to someone else. Also, your creditors cannot claim your 457(b) Savings Plan account to satisfy debts until distributed under the Plan rules. However, in a divorce settlement, the court may issue a qualified domestic relations order (“QDRO”) instructing the Plan to pay all or part of the value of your 457(b) Savings Plan account to an alternate payee at some time in the future. An “alternate payee” could be your spouse, former spouse, child, or dependent.

Death Benefits

If you die before receiving your full 457(b) Savings Plan account funds, your benefits will be paid to your beneficiary(ies) in the same manner you had been receiving benefits. If you had not yet made an election, your beneficiary may choose a lump sum payment or the annual installments. Your beneficiary will receive your account as soon as administratively possible following your death.