An Individual Retirement Fund (IRA) in which you deposit rollovers from an employerï¿1/2s qualified retirement plan.
an ERA consisting only of rolled-over funds from one of the above plans, and any earnings generated by these funds
an IRA used to hold the funds temporarily until you can transfer them to your new employer's plan
An unofficial term for an IRA used to "park" a distribution from one qualified plan until it can be rolled over into another qualified plan. With a conduit IRA, the forward-averaging potential of the distribution can be preserved.
An IRA that holds only amounts rolled over from a qualified retirement plan, 403(b) plan or similar plan, and earnings on those amounts. Prior to recent changes in the tax laws, amounts could be rolled over from an IRA to qualified retirement plan only if the IRA was a conduit IRA. Recent tax law changes have loosened this restriction.
an individual retirement account set up to hold tax-deferred amounts from another employer's qualified plan.
An individual retirement account that is established for the sole purpose of receiving a distribution from a qualified plan so that the assets can subsequently be rolled over into another qualified plan.
An individual retirement account established to accept a rollover from a qualified retirement plan. Funds in a conduit IRA subsequently may be rolled into another qualified retirement plan.
An individual retirement account (IRA) that is established for the sole purpose of receiving a distribution from a qualified plan with the intent of rolling those funds into another qualified plan in the future. The Economic Growth and Tax Reconciliation Relief Act increased portability of IRAs and employee-sponsored retirement plans. Individuals are now able to roll over after-tax assets held in a qualified retirement plan like a 401(k), a 403(b) plan as well as governmental 457 plan into a Traditional IRA. In addition, pre-tax assets held in a Traditional IRA may be rolled over into a qualified retirement plan. In order to preserve capital gains and income averaging treatment for a qualified plan distribution that is rolled over, the rollover must be made to a conduit IRA and rolled back into a qualified plan.
A conduit IRA is a new IRA that receives assets from a qualified retirement plan distribution and where the conduit IRA holder intends to roll over those funds into another qualified retirement plan in the future.
Conduit IRAs were established as holding accounts for distributions received from an employer's qualified retirement plan until those funds are rolled over into another employer's qualified retirement plan. Example: An individual changes jobs and receives a distribution from their previous company's retirement plan. They elect to do a Direct Rollover of the distribution into a Conduit IRA. At some point in the future, the Conduit IRA (the original rollover plus the earnings that have accumulated) can be distributed and rolled over into a new employer's qualified retirement plan.