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SamirAhmed

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Question about pension plans, 457, and 529?

I have money in a pension plan account from another job I left. I also have money in a 457 plan from the same job. Both accounts are filled with pre-taxed money. My new employer has a 457 plan, which I will tranfer the 457 into, but my question is this; I have a 529 plan set up for my child, and would like to transfer a bit of money from either the 457 plan or the pension fund into it. Would these contributions be subject to tax? I don't think they would, being that taxes have never been paid on the accounts and it's going from one of the same types of accounts to another. Anyone got any idea?

949 day(s) ago

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JoeThomas 		A 529 is for educational expenses. A 457 and a pension are for retirement. I do not think that you are allowed to transfer money from a 529 to a 457 or to a pension. If you attempt a transfer of a type that is not allowed
1) The money taken out of the 529 will be taxed, and
2) There will be a very large penalty for putting money into a 457 or pension that was not supposed to go there.

Posted 949 days ago

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