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.


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.

  1. IRA Plan

    A plan that individuals may establish to arrange and plan for ...
  2. Forward Averaging

    Treating lump-sum retirement-plan distributions as if they occurred ...
  3. Defined-Benefit Plan

    An employer-sponsored retirement plan where employee benefits ...
  4. Capital Gains Treatment

    The specific taxes assessed on investment capital gains as determined ...
  5. Rollover

    A rollover is when you do the following: 1. Reinvest funds from ...
  6. Individual Retirement Account - ...

    An investing tool used by individuals to earn and earmark funds ...
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  1. When can catch-up contributions start?

    Most qualified retirement plans such as 401(k), 403(b) and SIMPLE 401(k) plans, as well as individual retirement accounts ... Read Full Answer >>
  2. Who can make catch-up contributions?

    Most common retirement plans such as 401(k) and 403(b) plans, as well as individual retirement accounts (IRAs) allow you ... Read Full Answer >>
  3. Can you have both a 401(k) and an IRA?

    Investors can have both a 401(k) and an individual retirement account (IRA) at the same time, and it is quite common to have ... Read Full Answer >>
  4. Are 401(k) contributions tax deductible?

    All contributions to qualified retirement plans such as 401(k)s reduce taxable income, which lowers the total taxes owed. ... Read Full Answer >>
  5. Are 401(k) rollovers taxable?

    401(k) rollovers are generally not taxable as long as the money goes into another qualifying plan, an individual retirement ... Read Full Answer >>
  6. Are catch-up contributions included in the 415 limit?

    Unlike regular employee deferrals, catch-up contributions are not included in the 415 limit. While there is an annual limit ... Read Full Answer >>

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