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feedback on rolling over a 403b to IRA from Fidelity

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?

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Reply to
Uncle Eli
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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

Reply to
Dave Dodson

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.

Reply to
BreadWithSpam

Uncle Eli wrote on [Sat, 7 Apr 2007 05:37:23 -0500]:

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.

Reply to
Justin

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