conduit IRA business definition

A special IRA established to accept rollovers from other tax-deferred plans such as a 401(k) or 403(b). Funds rolled into a conduit IRA can be rolled back into a 401(k) or 403(b) so long as the funds have not been commingled with other IRA funds. A conduit IRA is useful for someone who is changing jobs and wishes to transfer retirement funds between employer-sponsored plans.