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Subject:  Re: Fooling with IRA/SEP-IRA/401k Date:  4/14/1998  5:18 PM
Author:  TMFPixy Number:  2821 of 88826


<<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.


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