A traditional IRA that holds only assets that were distributed from a qualified plan. Typically, the intention of using this type of plan is to store assets until they can be rolled into a new employer's qualified plan.

Should any other assets be commingled with the assets in a conduit IRA, the IRA will lose its conduit status and the assets are no longer eligible for capital gains and forward averaging tax treatments. There is no limit on the contributions transferred to a conduit IRA.