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Basic questions, I know; please forgive my ignorance.

I already have a deductible IRA established in a mutual fund, through a broker. It would definitely pay me to roll this over to a Roth IRA.

Question(s): Once I roll the mutual fund over into a Roth, can I then purchase other (Foolish) stocks to add to this retirement portfolio? If yes, how do I designate those new stock purchases as being part of the IRA? A person can't have more than one IRA (of any type), can they?

Would appreciate answers from those more Foolish than I. Thanks in advance. --Babalu
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Greetings, Babalu, and welcome.

<<I already have a deductible IRA established in a mutual fund, through a broker. It would definitely pay me to roll this over to a Roth IRA.

Question(s): Once I roll the mutual fund over into a Roth, can I then purchase other (Foolish) stocks to add to this retirement portfolio? If yes, how do I designate those new stock purchases as being part of the IRA? A person can't have more than one IRA (of any type), can they?>>

You may have as many IRA as you want. You just can't contribute more than $2K per year to any one or all of them combined.

When you convert your traditional IRA to a Roth, the money in that IRA is what's used to purchase stocks. If all you are transferring are securities during the rollover, then to purchase new stocks you must first sell some of those shares to get the cash to finance the new purchase. Most brokers, due to IRS recommendations discussed elsewhere in this folder, will not permit you to make a contribution to the Roth established by your rollover. You may, though, establish a separate account to receive new money and effect your purchases within that contributory Roth IRA.

Regards…..Pixy

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