feedback on rolling over a 403b to IRA from Fidelity
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Subject Author Date
feedback on rolling over a 403b to IRA from Fidelity Uncle Eli 04-07-2007
Posted by Uncle Eli on April 7, 2007, 6:37 am
I called Fidelity today to aks them if I could roll over some money
from a 403b and start an IRA and claim that amount as a deduction from
2006 taxes. Below is their reponse.
> I could not roll over, say 4000 from a dormant 403b to fund a new IRA
> and claim that 4000 as an IRA purchase for this tax year because one
> can't use money from a 403b to fund such a purchase. In order to
> have a tax deduction that money would have to come from money I am
> earning now. I am working part time. Does this make sense?

Any ideas about this. Does this mean I can't do it and get a tax
benefit before April 17?
>


Posted by Dave Dodson on April 7, 2007, 9:12 am
> Any ideas about this. Does this mean I can't do it and get a tax
> benefit before April 17?

That's what it means. If you contributed the $4000 to the 403(b), then
you already got a tax break on it, and you can't get a second break on
the same money. You can roll the 403(b) into an IRA to get more
control of it, but not to get another tax break. The tax break comes
when you contribute new money, as from your salary, savings, or non-
qualified investments.

Dave


Posted by on April 7, 2007, 3:57 pm

> I called Fidelity today to aks them if I could roll over some money
> from a 403b and start an IRA and claim that amount as a deduction from
> 2006 taxes. Below is their reponse.

You cannot deduct the money a second time. If it's in the 403b,
you already didn't pay taxes on it (ie. it wasn't counted as
income).

You can roll it into an IRA and not have to pay taxes on it
in the process - it's in a tax-protected account and it'll
remain in a tax-protected account. But you cannot deduct
it again.

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Posted by Justin on April 8, 2007, 7:12 am
Uncle Eli wrote on [Sat, 7 Apr 2007 05:37:23 -0500]:
>
> Any ideas about this. Does this mean I can't do it and get a tax
> benefit before April 17?

You can never get another tax benefit from it.

To get the tax benefit it must be new money. Not already in a tax
advantaged account.


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