- quote -

Any required SS taxes are paid on the original
contributions. Withdrawls are not subject to SS. There will
probably be manditory federal withholding of 20%

- quote -

Not for the Earned Income Tax Credit

- quote -

Line 16a of the 1040

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"Cliff" <cliffp[at]cox.net> wrote:
- quote -

Well, that's not quite right. Congress changed the law
regarding 457 plans. Employee contributions at least can be
withdrawn after the employment ceases.

I need to know the tax consequences, and how to avoid SS,
Medicare, Fed & State withholdings, since I've had no income
for the past year and anticipate no income for 2004 either.

TortFeasor[at]Cell#99.CountyJail.Net

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I've got a 457 plan set up by a Tribal government. I
contributed to the plan. The Tribe did not. I no longer
work for the tribe.

I would like to withdraw all the funds. I had no income
last year and anticipate no income this year. Thus, I
expect my tax burden to be low or zero.

I don't want anything to be withheld from the 457
withdrawal. I'll pay the taxes, if any, next year.

Will I have to pay Social Security and such on the withdrawal?
Will the withdrawal count as "earned income?"
Will it go on Schedule D?

Thanks to anyone who can help.

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TortFeasor <TortFeasor[at]TheBigHouse.com> wrote:

- quote -

Yes. I have one :-) What's your question?

--
~ Kathleen Anderson
Spider Web Woman Designs
http://www.spiderwebwoman.com/

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TortFeasor[at]TheBigHouse.com says...

- quote -

457 plans are deferred compensation plans for local
govenment and states. Go to IRS web site - www.irs.gov and
search for 457 and you will find what you are seeking.
Distribution is made upon severance from employment or age
70.5. Early distributions are permitted under limited
circumstances, ie sudden financial hardship due to illness
or accident wherein you cannot get the funds elsewhere.

Cliffp
CA Tax Preparer

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TortFeasor" <TortFeasor[at]TheBigHouse.com> wrote:

- quote -

I looked over 300 past posts and saw nothing about 457. You
might try posting again. And while you're at it, tell us
whether the plan is private or government.

-HW "Skip" Weldon
Columbia, SC

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I've posted TWO messages asking for information on making
an early withdrawal from a 457 plan. No answers.

Has anybody even heard of them?

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