Conduit IRA
A traditional IRA that holds only assets that were distributed from a qualified plan. Investopedia Says:
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. Related Terms:
Capital Gains Treatment
Defined Benefit Pension Plan
Forward Averaging
Individual Retirement Account - IRA
IRA Rollover
Rollover
Simple IRA |