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Conduit IRA |
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Rollover IRA An IRA to which one has transferred funds from an employer-sponsored qualified retirement account. This usually occurs when an account holder takes a new job or otherwise wishes to take advantage of the tax benefits an IRA offers over, say, a 401(k). Most IRA programs only allow one rollover per year; with a Roth IRA, there is an income limit beyond which a rollover is not allowed. An IRA rollover may be accomplished through a direct transfer or by check; however, a check transfer brings a 20% withholding charge, so account holders are advised to make direct transfers. It is less commonly called a conduit IRA. Conduit IRA. A conduit IRA is another name for a rollover IRA, which you establish with money you roll over from a 401(k), 403(b), or other retirement savings plan. Assets in a conduit IRA continue to be tax deferred until they are withdrawn and may be transferred into a new employer's plan if the plan allows transfers. Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content. |
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