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Subject:  New Tax Laws and Conduit IRAs Date:  1/15/2002  5:54 AM
Author:  ottomotive Number:  33307 of 99740

I recently rolled over my small 401(k) from an ex-employer to a conduit IRA. I don't think my new employer allows the IRA funds to be rolled over into its 401(k) plan. I understand from reading material on this subject that a conduit IRA can only contain moneys from an employer retirement plan but not new money. I would like to make contributions to the conduit IRA rather than open a new IRA account. Do the new tax laws allow new money to be contributed to the conduit IRA? If so, does the annual limit (which I understand is $3,000 for this year) apply to new monies, or the account balance (which is approx. $2,000) plus the new monies? Thanks.

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