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Hello MF fellows,

I have a very basic question.

Can I open both a traditional IRA and a Roth IRA
and contribute $2000 to each account in a year?
Or, I can only open a kind of IRA?

Thanks,

MFmahler
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I believe its one or t'other...assuming your income qualifies you. Now if you are married your spouse can also open one, again if income qualifies...

I think this is correct. But if its not, somebody out there will let us know ;)
t
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You can open an unlimited number of traditional IRAs each year, in addition to an unlimited number of Roth IRAs.

However, the total of all your contributions to IRAs of any type, anywhere, must be less than $2000 (this year).

So you can contribute $1000 to Traditional IRA #1, $250 to Traditional IRA #2, $500 to Roth IRA #1, and $250 to Roth IRA #2, but no more.

You could even open up 2,000 different IRAs and put a dollar in each, but no more.

It doesn't matter whether the IRA is Roth or Traditional for the purpose of establishing your account limit.
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You can open as many IRA's as you want, Roth or Traditional, but can only contribute the maximum for the year. (As jrr pointed out.)

The only way you can contribute more is if, for example, you owned your own business. Then you would be able to open a SEP-IRA (or any other business retirement plan, for that matter) and contribute based on your self-employment income. Other than that, I know of no other way.

Caat
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However, the total of all your contributions to IRAs of any type, anywhere, must be less than $2000 (this year).

Actually, you can contribute $2,000. The correct wording is "... must be no more than $2,000 (this year)."
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Adding to a previous post. I concur that you may open any number and either type of IRA's. You are limited to a total of $2.000 per year total [read on]. Under the latest tax bill signed the limits were changed as follows.
------------------ Regular-------------catch-up-----------------------
YEAR------ Contribution-----------if 50 or older-----TOTAL
2002--------$3000----------------$500--------------$3500
2003--------$3000----------------$500--------------$3500
2004--------$300-----------------$500--------------$3500
2005--------$4000----------------$500--------------$4500
2000--------$4000----------------$1000-------------$5000
2007--------$4000----------------$1000-------------$5000
2008--------$5000----------------$1000-------------$6000

After 2008 the IRA contribution, but not the catch-up is indexed for inflation in $500 increments. I don't have this information but I believe all of these changes expire in 2010 or 2011 without further action from Washington.
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