Can I have an IRA with two different mutual fund companies?

Question

Is it allowable to have a Roth IRA with two (or more) different mutual fund compaies, so long as you don't exceed the maximum contribution amount permitted by the IRS?

Answer 1

Yes, it's allowable. Your maximum contribution is the same $4,000 ceiling regardless of whether you are using one company or twenty. However, some companies do charge a service fee if your accounts do not reach some minimum. For example, Vanguard will charge you $10/year for accounts under $10K unless you have a total of $50K or more in your accounts.

Answer 2

Yes. Think of the term "IRA" as a label that you can apply to any account you own, whether it's a savings account, a mutual fund, or a brokerage account. Once you apply that label to it, it is subject to the rules and regulations regarding IRAs. You are free to move money around, but once it has the IRA label on it, it has to stay on it unless you follow the procedures for removing money from the IRA. So if you have some money in Mutual Fund X, and you have designated it as an IRA, you can put that money into Mutual Fund Y and also count it as an IRA, so long as you follow the correct procedures for doing the transfer (your financial institution can help you with those details).

Answer 3

Be careful that you don’t set too many little accounts all over the place. It is a hassle for recordkeeping and tracking your results. We have our clients consolidate into one of the big low expense no-load mutual funds (Vanguard, Fidelity) or go with a low cost broker like Schwab where you can buy a variety of funds in your IRA.

Answer 4

Yes, you can choose as many brokers and/or mutual funds for your IRAs as you would like. IRS only cares about what gets reported towards your social security number as aggregate.

Answer 5

Yes. As long as you don't go over the $4,000 aggregate limit. You can have mutual funds through various brokers, banks, etc.

The IRS FAQ may be helpful to you for other IRA related questions.

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Dax Desai
Investment Mgr
www.dnainvestments.com

Answer 6

Yes

Answer 7

right that's one ingredient to undergo in suggestions pertaining to to the Roth IRA account. there is under no circumstances any tax on it the place as there is on your 401k. This turns into significant while thinking your asset blend. income producing investments are taxed on the finished tax fee as would be your 401k. for this reason it truly is clever to take a place a minimum of a few of your 401k in income producing materials--bonds, LPs, REITs. The income from each and each of those is taxed on the finished tax fee besides. Now with the aid of fact the Roth IRA is under no circumstances taxed, it is likewise clever to place those varieties of materials into the Roth IRA additionally. and additionally fairness investments. What you missed to point are investments exterior of those 2 automobiles. in case you have some, they must be investments that must be taxed on the capital helpful factors fee--fairness investments. truly, except you're interior the utmost tax bracket it truly is clever to have an element to your fairness investments exterior of a 401k. by making use of doing so the entire tax bill would be decreased, truly in case you're an prolonged time era investor. in case you have the least hankering to take a place a number of your income gold and silver those actually must be interior of a Roth IRA. the two are taxed as collectibles in any different case. yet another ingredient to evaluate in regard to the 401k is that for the time of years yet to come the tax fee could truly be greater, possibly lots greater, than it presently is. considering the fact which you truly haven't any decision of putting non-mutual fund investments interior of a 401k different than for possibly company inventory, it easily does make experience to take a place Roth IRA income company shares truly than mutual money. yet be careful. it truly is amazingly tempting for many to take a position with their Roth IRA account truly couple of minutes era buying and promoting which in any different case could be taxed on the finished tax fee. that must be a sturdy thank you to chop back that fee of the Roth account. Be in user-friendly terms a sprint careful. make investments interior the likes of MCD, WMT, JNJ, BDX, KO, etc. or maybe ETP with its 8% dividend or PAA with its 7.5% dividend. and don't make investments it in fewer than 5 distinctive companies.

Answer 8

Yes. the ROTH is one entity that you can put what ever you want in it. Such as mutual funds. stocks, cash etc.