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Level 2
posted Jun 1, 2019 1:06:07 AM

Can I use my 403B rollover to trad IRA amount to build up an IRA basis to offset subsequent retirement distributions that will naturally be regarded as income?

I'm not referring to IRS premature penalty. The IRA basis is important to me becaus e I have a large distribution that I dont want to have added to income as that will inflate my tax liability enormously

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1 Best answer
Expert Alumni
Jun 1, 2019 1:06:09 AM

A rollover from your 403(b) account to a Traditional IRA will not add anything to your basis. If all your 403(b) contributions were from pre-tax dollars, you have no basis in your 403(b) account. A rollover to a traditional IRA will carry over the same basis.

2 Replies
Expert Alumni
Jun 1, 2019 1:06:09 AM

A rollover from your 403(b) account to a Traditional IRA will not add anything to your basis. If all your 403(b) contributions were from pre-tax dollars, you have no basis in your 403(b) account. A rollover to a traditional IRA will carry over the same basis.

Level 15
Jun 1, 2019 1:06:09 AM

A rollover from a 403(b) *can* add traditional IRA basis if any portion of the rollover from the 403(b) to the traditional IRA was after-tax basis in the 403(b).  If so, click the EasyGuide button on the Let's Find Your IRA Basis page.