- Traditional IRAs
- Roth IRAs
- SEP IRAs
- Simple IRAs
- 403(b) Plans
- Thrift Savings Plan
- Education Savings
Last Updated March 19, 2009
Also called a Conduit IRA.
A Traditional IRA that holds only assets there were distributed from a qualified plan , 403(b) account or 457(b) plan
If other assets are added to the IRA, including regular IRA contributions, the account is no longer a rollover IRA.
Assets are usually maintained in a rollover IRA, to maintain the eligibility of those assets to be rolled-back to a qualified plan , 403(b) or 457(b) plan.
Prior to 2002, before EGTRRA went into effect, 403(b)s and qualified plans could accept rollovers from IRAs only if the IRA was a rollover IRA. Effective for distributions that occur after December 31,2001, qualified plans, 403(b)s and 457(b) plans can accept rollover contributions from any Traditional IRA, SEP IRA, or SIMPLE IRA-providing the SIMPLE IRA has met the 2-year requirement. The rollover cannot include non-taxable amounts, or amounts ineligible for rollover-such as RMD amounts
IRC § 408(a) , IRC § 408(d)(3)(A)(ii), Instruction 1099-R&5498
Additional Helpful Information
- A qualified plan is not required to accept rollovers
- A qualified plan that accepts rollovers from IRAs, can limit the type of IRA from which they will accept rollovers. For instance, some plans accept only rollovers from rollover IRAs.
- Certain beneficial tax-treatment, capital gains and income averaging treatment that apply to qualified plan assets may be preserved if the assets are maintained in a rollover IRA.