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Author: Littlebush Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75375  
Subject: Can I have 2 Roth IRAs Date: 3/3/2001 3:51 AM
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I already have a Roth IRA with Datek. I just sent in my last monthly check to finish off my $2000 for 2000. (no joke)

I am considering opening another Roth IRA with Buy and Hold since I make regular monthly deposits and buy stock as soon as they clear. This would save me seven dollars per purchase, lowering my cost basis.

I do not want to close the Datek account.

Can I have two Roth IRA accounts as long as I don't go over the $2000 per year total between the two accounts?

Is this even smart?

Littlebush
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Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 28236 of 75375
Subject: Re: Can I have 2 Roth IRAs Date: 3/3/2001 6:07 AM
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Greetings, Littlebush, and welcome. You asked:

Can I have two Roth IRA accounts as long as I don't go over the $2000 per year total between the two accounts?

Is this even smart?


While it means more administration to you in keeping track of multiple accounts and it may mean greater expense if each of those custodians charges an annual maintenance fee, there is no reason you can't have as many IRAs as you wish. The only restriction is as you have noted: You cannot in the aggregate contribute more than $2K to any or all of those IRAs combined. Whether the maintenance of multiple accounts is "smart" or not I'll leave to you. :-)

Regards..Pixy


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Author: Crosenfield Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 28237 of 75375
Subject: Re: Can I have 2 Roth IRAs Date: 3/3/2001 10:37 AM
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It would make sense to me to have a Roth with a mutual fund company, containing mutual funds; one with a deep discount broker, containing actively traded stocks; and one with a full-service broker containing bonds, GNMAs, and possibly some core, long-term buy and hold stocks.
Sure, multiple IRAs mean more paperwork, but no one custodian is best at all types of investments.
Best wishes, Chris

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Author: jkrou Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 28238 of 75375
Subject: Re: Can I have 2 Roth IRAs Date: 3/3/2001 10:56 AM
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Littlebush,
One word of caution: while you would be saving $7 per trade with Buy and Hold over Datek, you will be hit with an activity fee for each period that you do not make a trade. Before you jump over there, make certain that you understand the inactivity charge so that you can avoid it.

Jenn
Disclaimer: I have accounts at both Datek and Buy and Hold.

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Author: jkv1 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 28274 of 75375
Subject: Re: Can I have 2 Roth IRAs Date: 3/5/2001 3:49 PM
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A Vanguard IRA info sheet makes the specific recommendation to have a separate IRA for each instance of a traditional to Roth conversion, due to the separate five year holding period triggered by each conversion. You can have as many Roths as you wish. Just keep standard contribution Roths separate from conversions.

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Author: 2merge Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 28285 of 75375
Subject: Re: Can I have 2 Roth IRAs Date: 3/5/2001 6:02 PM
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You can have as many accounts as you like although its a hassle keeping track of all of them-you cannot exceed the allowable allocation, but each year you could have a separate trustee (like a bank or brokerage house) for that year's allocation for the Roth-this also works for an IRA. Eventually you'll want to combine them for ease of records.

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