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Subject:  Re: Two questions-IRAs Date:  5/20/1999  5:38 PM
Author:  jocave Number:  10643 of 88507

1. I recently quit a job and rolled my 401k distribution into a rollover IRA. I've read that if I touch this money, ie add to it, invest it, etc., I won't be able to roll it back into my new company's 401k plan. True or False?

True to a point. So long as you don't add or subtract money, you're free to invest it any way you please without losing the ability to move it into your next 401(k), assuming your next 401(k) accepts rollover contributions.

2. Maybe a stupid question, but how many IRA's is a person allowed to have? ie can you have two Roths, two traditional IRA's, etc.? (i know you can have a roth and a traditional IRA, provided you dont have a 401k plan) - right?

You can have as many as you like, but can only contribute $2000/year among them all. If it makes you happy, open 1000 traditional and 1000 Roth IRA's every year and contribute $1 to each. Now, thousands of $1 balances would be impossible to invest and track, but you're allowed to do it. Be aware that things like the $10,000 first-time home buyer exception are similarly the total you can take from all IRA's. Rarely does it make sense for anyone to have more than 1 Roth or more than 1 traditional. Many have 1 of each.

It's certainly possible to have a Roth IRA, a traditional IRA, and a 401(k). It gets complicated to figure out who can invest how much into each of these vehicles and how much of the traditional contribution is deductable, but you can thank your friendly Congress-people for that.
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