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7. What will happen with my 457 contributions when EAA ends?
You were fully vested in your 457 plan contributions from the beginning of your EAA employment. You may leave 457 contributions in your Voya Financial account. You are not required to take out or roll over your contributions to another account when your EAA employment ends. However, 457 account balances under $500 will be distributed automatically at no cost 45 days after termination if EAA employment ends before June 1, 2017, or 180 days after termination if EAA employment ends on or after June 1, 2017, and you are not reemployed with a public school or the State of Michigan within the 180-day period.
You may also roll the assets over to another 457 plan or an IRA. Please note that 457 plan assets can only be rolled to another governmental 457 plan or IRA. They cannot be rolled into a 401(k) plan. If you roll them over to an IRA, they will become subject to IRA tax rules. Voya may also charge a distribution processing fee. Consult with Voya or your tax advisor for more details.
You may also take a full or partial distribution of your 457 account assets. Before taking a distribution, consider how it may impact your future retirement readiness. Voya may also charge a distribution processing fee.