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Author: cfayed One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 123535  
Subject: Conduit IRA clarification Date: 11/27/2003 9:54 PM
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After reading some posts on rolling over a 401(k) to an IRA I think some people may not be aware of a change in the rules beginning in 2002. It is no longer necessary to keep 401(k) funds in a conduit IRA in order to roll them over to a new employer's plan. Begining in 2002, any IRA can be rolled into an employer plan so long as (1) the plan allows such contributions and (2) only the portion of the IRA that would otherwise be taxable is rolled over.

That being said taxpayers born before 1/1/36 may continue to benefit from the use of conduit IRAs in order to retain eligibility for 10 year averaging and capital gain treatment of distributions.

Just thought some folks might want to know.

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