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).

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

Thank You, Hohum! That's great news both for my investing and for humbling a certain 'know it all'. I have printed off the information and will pass it on.

Stay in the black, Culby

I have over seven different Roth accounts {brokerages & mutual funds}.

Nuff Sed!

sunray
a man without any (remaining) Traditional IRAs

a man without any (remaining) Traditional IRAs


You seem to state that as if it's a good thing. I don't claim to know your particular situation, but personally, I will have little to no income for many years in retirement outside of investments. Having traditional IRAs will allow me to withdraw money and pay 0%, 10% & 15% in taxes instead of the 28% I'm deferring now.

It sounds like you may have converted traditional IRAs to Roths. If so, I'd be interested to know the marginal tax rate you paid on your conversions and what advantage you saw in converting them now rather than taking distributions in retirement.

I apologize if I'm misunderstanding your situation, I'm just curious.

-murray