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 the qualified plan of a new employer. Should any other assets be commingled with these assets, the IRA loses its conduit status and the assets are no longer eligible for capital gains and forward averaging tax treatments.



Introductory Tour through Retirement Plans - Here you will find tutorials that are each devoted to one the most common retirement plans, explaining how to establish, fund, and then take distributions from it.

Recharacterizing Your IRA Contribution or Roth Conversion - Learn reasons for making this transaction and the calculation of any earnings or losses.

Traditional IRA Deductibility Limits - Learn if you can take a tax deduction on any participant contribution you make.

Supplementing Your Retirement Income with IRAs - According to the Trustee of the Social Security Fund, the fund will be depleted by 2034. Are you ready?

Tough Times...Should You Disturb Your Qualified Plan's Assets? - Before you do, know the eligibility rules, tax consequences and the proper procedures.
Related Terms

Capital Gains Treatment

Defined Benefit Pension Plan

Forward Averaging

IRA

Rollover

Simple IRA

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