457 tax distribution?

Probably so YES if you did make some after income tax contributions amount to the 457 plan during your life time so that you do have a COST basis in the plan for this purpose and time in your life.

To be recovered free of federal income tax a few dollars a month and year over your life expectancy for this purpose and time in your life.

And you may need to find some face to face assistance when this is your first year so that you would may sure that you do set it up correctly to start with during the 2013 tax filing season.

Your TRUSTEE or the payer of the amounts may be able to help you to get it done right during the 2013 tax filing season.

Partly Taxable Payments

If you have a cost to recover from your pension or annuity plan (see Cost (Investment in the Contract) , earlier), you can exclude part of each annuity payment from income as a recovery of your cost. This tax-free part of the payment is figured when your annuity starts and remains the same each year, even if the amount of the payment changes. The rest of each payment is taxable (however, see Insurance Premiums for Retired Public Safety Officers , earlier).

You figure the tax-free part of the payment using one of the following methods.

Simplified Method. You generally must use this method if your annuity is paid under a qualified plan (a qualified employee plan, a qualified employee annuity, or a tax-sheltered annuity plan or contract). You cannot use this method if your annuity is paid under a nonqualified plan.

General Rule. You must use this method if your annuity is paid under a nonqualified plan. You generally cannot use this method if your annuity is paid under a qualified plan.

You determine which method to use when you first begin receiving your annuity, and you continue using it each year that you recover part of your cost.

Go to the www.irs.gov website and use the search box for Publication 575 (2012), Pension and Annuity Income Publication 575 - Main Content

http://www.irs.gov/publications/p575/ar02.html

www.irs.gov/publications/p575/ar02.html#en_US_2012_publink1000226762

Hope that you find the above enclosed information useful. 03/29/2013