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URL:  http://boards.fool.com/a-co-worker-says-that-an-individual-can-have-only-27004272.aspx

Subject:  Re: HELP SETTLE A ROTH ARGUMENT Date:  9/18/2008  3:55 AM
Author:  Hohum77 Number:  63867 of 76418

A co-worker says that an individual can have only one Roth IRA, period. My position is that you should be able to have as many as you like as long as you do not contribute more than $5,000 ($6,000 if you are older than 50) to those combined accounts for any given year. I would appreciate any information on this (even if I have to wipe off some egg).

The $5000 IRA contribution limit started this year (2008).
Your position is correct- one can have multiple Roth accounts, and even Roth/traditional IRA combination of accounts but your Total contribution to all the IRA accounts cannot exceed the annual contribution limit ($5000 for 2008).

Your IRS reference publication is Pub 590.

I cannot find an explicit mention of multiple Roth IRA, but here is a paragraph that covers the Roth/Traditional IRA combination. Note the use of the plural form

Roth IRAs and traditional IRAs. If contributions are made to both Roth IRAs and traditional IRAs established for your benefit, your contribution limit for Roth IRAs generally is the same as your limit would be if contributions were made only to Roth IRAs, but then reduced by all contributions for the year to all IRAs other than Roth IRAs. Employer contributions under a SEP or SIMPLE IRA plan do not affect this limit.

http://www.irs.gov/publications/p590/index.html


Hohum
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