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February 19, 2009

Commingling

Your Guide

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Definition

Mixing of retirement plan assets that may be required to be maintained separately for  certain reasons. For instance, adding regular IRA contributions to a conduit IRA is commingling, and results in the account losing it’s ‘conduit’ status.

Commingling is also used to refer to combining IRA assets with qualified plan assets, combining retirement plan assets with non-retirement plan assets.

Referring Cite

IRC § 408(a)(5)

Additional Helpful Information

IRC § 408(a)(5)  provide that “The assets of the trust will not be commingled with other property except in a common trust fund or common investment fund.”

Written By

Denise Appleby

Denise is CEO of Appleby Retirement Consulting Inc., a firm that provides IRA resources for financial/ tax/legal professionals. She has over 20 years of experience in the retirement plans field, which includes training and technical consultation.

Denise writes and publishes educational /marketing tools for advisors; available at http://irapublications.com. Denise co-authored several books on IRAs

Denise is a graduate of The John Marshall Law School, where she obtained a Masters of Jurisprudence in Employee Benefits, and has earned 5 professional retirement designations.
She has appeared on numerous media programs, sharing her insights on retirement tax laws.

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