Conduit IRA
A traditional IRA that holds only assets that were distributed from a qualified plan.
Investopedia Commentary
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 Links
Introductory Tour through Retirement Plans
Recharacterizing Your IRA Contribution or Roth Conversion
Traditional IRA Deductibility Limits
Supplementing Your Retirement Income with IRAs
Tough Times...Should You Disturb Your Qualified Plan's Assets?
See also: Capital Gains Treatment, Defined Benefit Pension Plan, Forward Averaging, IRA, Rollover, Simple IRA