Conduit IRA - 401k Glossary

Conduit IRA is a traditional IRA account that holds only those assets that were distributed from a qualified retirement plan. When employees change jobs, they usually store their assets in a conduit IRA until their assets can be rolled over to their new employers. Go here to learn more about 401k Rollovers.

If any other retirement assets are amalgamated with the assets in a Conduit IRA, the IRA will lose its conduit status and the assets will therefore NOT be eligible for favourable capital gains tax treatments.