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URL:  http://boards.fool.com/rexhavoc-ltltam-i-reading-you-correctly-keep-10153614.aspx

Subject:  Re: Fooling with IRA/SEP-IRA/401k Date:  4/14/1998  5:18 PM
Author:  TMFPixy Number:  2821 of 76384

RexHavoc,

<<Am I reading you correctly: Keep the 401k rollover in its own SEP-IRA account, and put any other funds (new investments, IRA rollovers, etc.) into a different SEP-IRA account so they don't taint the 401k funds?>>

Keep the 401k rollover in what's called a "conduit" IRA, a form of traditional IRA so-called because the only money you put into it is money that came from a qualified retirement plan like a 401k. As long as that's the only kind of money in that IRA, then it along with all earnings thereon may later be transferred to a new employer's qualified plan that accepts rollover money from other qualified retirement plans. Hence the name "conduit" because the interim IRA is the conduit between the plans for that money.

Regards…..Pixy


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