can one have two IRA accounts?

Answer 1

You can have all the IRA's that you want, however you can only deduct one set amount every year no matter how many you have or what amounts they are.. The amounts are for traditional and Roth IRAS are: $4,000.00 until April 2007 plus $1,000 catch up if you are over age 50 and $4,000 for 2007 plus $1,000 catch up if you are over age 50.

Answer 2

Yes, a person can have more than one IRA account; however, if you have multiple IRAs they are all still subject to the contribution limit. For example, if you have two IRA accounts open, and for the year 2006 the contribution limit is $4000 ($5000 if 50 or older), the total contribution between both accounts cannot exceed the $4000 limit ($5000 if 50 or older).

Per IRS Pub 590: "If you have more than one IRA, the limit applies to the total contributions made on your behalf to all your IRAs for the year."

For some people it's just easier to have one IRA account.


FYI:
For rollovers/transfers into IRA accounts, a person really doesn't have to worry about exceeding contribution limits.

There are people who have two IRA accounts to keep certain money separate. For example, a person rolls over a 401k from an old employer into a Traditional IRA, so that particular IRA will be for their rollover money. Let's say that the same individual decides that they also want to make a contribution to an IRA, but they want to keep it separate from their IRA that has the rollover money, they can open another IRA in which to make the contribution in. Please note the person still has to adhere to contribution limits when they are making contributions only.

Answer 3

Yes. You can have as many as you care to manage.

Most common people have one Roth IRA and Traditional IRA. Sometime it is helpful to have certain fund be kept separate and therefore have more than one Traditional IRA account.

For example, while you worked for Company A you had a 401k account. Upon leaving the company, you may roll over the 401k to a Traditional IRA. After finishing MBA, you rejoin Company A. Company A would allow you to roll the Traditional IRA which contain only the fund originated from the 401k back to your new 401k account.

There are reasons why some people may want to keep multiple Traditional IRA accounts for keeping each source separate from the others.

Most people would have only one Roth IRA. The only reason I can think of for having multiple Roth IRA is when a custodian have different investment options that isn't available elsewhere.

Answer 4

I have two. I worked for one employer and rolled my retirement benefits into an IRA with Vanguard when I left. When I worked for another employer, who used Fidelity for retirement accounts. Now I'm about to start another job, so we'll see what happens with that one... I don't remember the details, since I haven't had retirement benefits for a while. However, my recollection is that there is a difference between funds that you deposit into an IRA and those that you roll over from a 401k (or similar plan) and that all of that money should not go into one IRA.

Answer 5

You can have as many IRA accounts as you want. However, you are limited in 2006 to $4,000 (or $5,000 if over age 50) aggregate in contributions to any and all accounts. Rollovers from an employer plan do not count against this limit.

Answer 6

you can have a Roth IRA, a regular one or two, a rollover IRA from your 401K.

Answer 7

YES... I have numerous ones.... BUT there is a limit each year to what you can contribute, so between them you can do your limit.

Happy Investing ! : )

Answer 8

I don't think so. I think you start one , say maybe a Roth, then you buy various securities to make up the portfolio. Could be stocks or whatever you want.