Your 457(b) after leaving a hospital or nonprofit job
Non-governmental 457(b) plans can't be rolled into an IRA. They are paid as wages or moved by plan-to-plan transfer. How to check yours.
Many hospitals and nonprofits offer a 457(b) plan next to their 403(b) or 401(k). It has its own contribution limit, so people who saved the maximum in both deferred twice the usual limit. After you leave, a 457(b) at a private nonprofit behaves differently from your other plan.
- It can't be rolled into an IRA or a 401(k). It is paid out under the plan's rules and reported as wages on a W-2 from the old employer.
- It can be moved by a plan-to-plan transfer into another nonprofit employer's 457(b), if both plans allow it. A transfer is not a payout, so it leaves no tax form.
- Until it is paid, the money belongs to the employer and is exposed to the employer's creditors.
Governmental 457(b) plans (states, cities, public hospitals) are different: they can be rolled over like a 401(k).
How to check yours
- Look at the old W-2s. Box 12 code G means 457(b) contributions. If total deferrals were above the 401(k)/403(b) limit, a 457(b) is the usual reason.
- Look for a payout. A W-2 from the old employer after you left, with an amount in box 11, means it was paid.
- Look at the new employer's 457(b). A "transfer in" in its history means it moved.
- If neither, ask the old employer's benefits office for the balance and your payout election.
Attovar's records check flags this pattern from IRS transcripts automatically.
Sources
- IRS: Non-governmental 457(b) deferred compensation plans
- 26 CFR 1.457-10: Miscellaneous provisions (plan-to-plan transfers)
Reviewed October 2026. Information only, not legal or tax advice.