Conduit IRA

DEFINITION of 'Conduit IRA'

A traditional IRA that holds only assets that were distributed from a qualified plan. Typically, the intention of using this type of plan is to store assets until they can be rolled into a new employer's qualified plan.

BREAKING DOWN 'Conduit IRA'

Should any other assets be commingled with the assets in a conduit IRA, the IRA will lose its conduit status and the assets are no longer eligible for capital gains and forward averaging tax treatments. There is no limit on the contributions transferred to a conduit IRA.

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RELATED FAQS
  1. How do I use a conduit IRA?

    An Individual Retirement Account (IRA) is an account that allows individuals to invest a certain amount of pretax income ... Read Answer >>
  2. What can I do with a Conduit IRA I received as part of a distribution from my Mother's ...

    I need to understand what can I do with these funds and the potential tax consequences of liquidating and/or rolling over ... Read Answer >>
  3. Should I set up a Roth IRA or a traditional IRA?

    I recently left my place of employment because I had moved out of state. At my place of employment we had a 401k plan. ... Read Answer >>
  4. How do I roll over a Simple IRA to a Roth IRA?

  5. Can I hold multiple IRAs?

    IRAs are investments made to plan for retirement, which offer certain tax advantages, depending on the type, and often matching ... Read Answer >>
  6. Is an IRA a qualified plan?

    Learn about the definition of a qualified retirement plan and some of the features and benefits of individual retirement ... Read Answer >>
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