can a person set up more than one ROTH IRA?

Question

I know there is a max contribution amount for a Roth IRA..... but can you set up mroe than one Roth IRA a year if you have more to contribute? Is that lawful and everything, or is it one IRA, and only that single maximum contribution each year?

Answer 1

You can only contribute $4,000 to a Roth IRA for the year, $5,000 if you are over 50. You could add $1,000 to 4 different Roth IRA's if you wanted to, but if I understand you correctly, you can't open 2 Roth's and add $4,000 to each. If you are married, you wife could open her own Roth and add $4,000, but that is the max for one person.

Hope this helps.

Answer 2

You cannot contribute more than the max to a Roth IRA. That's why there's a maximum. You can split your contribution amongst different IRAs (Traditional, Roth, Non-Deductible)

If you have self employment income you can open a SEP-IRA (in addition to the standard IRAs with separate maximum contributions).

Answer 3

You can have as many ROTH IRA's as you want. It's just the total sum of $$$ that counts towards a "max" contribution.

Best bet;
It's a lot of paperwork following many accounts (over the years). If you open an account with a good brokerage you can buy many investments "under one roof".

Some good choices would include;
Charles Schwab, Inc.
Fidelity Brokerage
TDAmertrade

Good luck

Answer 4

You can open one when you get that job you're looking for. For now though, I'd put it in a bank CD or savings account until then. A Roth is good choice because it builds tax-free earnings, you can make qualified withdrawals starting at age 59 1/2, and you can always borrow against the principal without penalty.

Answer 5

no