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. Are short and long dividends taxable before I take any disbursements from my simple ...

  3. 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 >>
  4. What is the difference between a ROTH, SEP and Traditional IRA?

    The Roth IRA was established in 1996 as the newest addition to the individual retirement accounts (IRAs) available to individuals. ... Read Answer >>
  5. Is a Roth IRA a qualified retirement plan?

    Analyzes the eligibility of the Roth IRA as a qualified retirement plan and explores the differences between the Roth IRA, ... Read Answer >>
  6. What are the main differences between a Simplified Employee Pension (SEP) IRA and ...

    Discover the difference between a simplified employee pension IRA and a traditional IRA so that you can choose the best retirement ... Read Answer >>
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