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Is there a limit to how many different IRA accounts you can open? Eg. Can you have a traditional, Roth and Rollover all at the same time?

Thanks for your help.
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Can you have a traditional, Roth and Rollover all at the same time?

Short answer: Yes.

Longer answer: You may not be eligible to open a Roth IRA if you exceed a specific income amount.
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No worries on the income matter, as a couple we top out at 70,000 AGI.

However, I will be changing jobs and want to do something with my 403b, which will most likely be a Rollever IRA. I just need to know if I can have multiple accounts at the same time.

Thanks for your answer.

I'll take any other thoughts on the matter as well.
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However, I will be changing jobs and want to do something with my 403b, which will most likely be a Rollever IRA. I just need to know if I can have multiple accounts at the same time.

Yes, you can have multiple accounts at the same time. However, the important thing to remember is that the contribution limit applies to all IRA accounts, not each account individually.

By that I mean the following, assume you were to open a Roth IRA and a Traditional IRA. You can only contribute a maximum of $3000 ($3500 age permitting) but it can spread between the two accounts in any fashion you like. You could do $1500 to each account, $2000 to the Roth and $1000 to the Traditional. Does that make sense?

Keep in mind, the rollover amount does not count as a contribution. Therefore, you could roll your 403b into an IRA and still make a full $3000 contribution to a Roth/Traditional.

Hope that helps.

dt
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Not only can you have a Roth IRA, a traditional contributory, and a rollover, you can have multiple accounts of each type with different trustees. You might have an IRA with a full service broker for bonds (watch out for annual fees!), a discount broker for stock trading, and several mutual fund companies. When you have been contributing for several years and the balance has built up, you don't have to have all your money with one firm....but of course as you multiply accounts, the paperwork and possibly fees build up also. You are only limited as to total annual contribution.
Best wishes, Chris
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Very helpful. Thank you to all of you that responded!
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Open an IRA or Roth in your wife's name then you can contribute $3000 or whatever to each account per year. The MSA that was mentioned, the contributions are also tax deferred which you can contribute in addition to IRAs. If you draw the money out of the MSA to use for medical expenses you do not pay income tax on that amount. If you use the money for anything else you pay income tax. Or you leave it in the account like an IRA.
Sal
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Not only can you have a Roth IRA, a traditional contributory, and a rollover, you can have multiple accounts of each type with different trustees. You might have an IRA with a full service broker for bonds (watch out for annual fees!), a discount broker for stock trading, and several mutual fund companies.

Another potential reason for having multiple IRAs is if you are a young retiree taking 72(t) distributions. The IRS formulas for calculating the size of the distribution may give a number that is more than you wish to take out each year. Splitting the IRA and taking a distribution from only one of them provides more flexibility.
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"The IRS formulas for calculating the size of the distribution may give a number that is more than you wish to take out each year. Splitting the IRA and taking a distribution from only one of them provides more flexibility. "

I don't see how this would be true. You must take the same total amount whether you take it from one IRA or all of them. You can eliminated the IRAs one by one if you like.
The size of distribution required has nothing to do with the number of IRAs, so it is difficult to see where there would be any more flexibility.
Best wishes, Chris
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"The IRS formulas for calculating the size of the distribution may give a number that is more than you wish to take out each year. Splitting the IRA and taking a distribution from only one of them provides more flexibility. "

I don't see how this would be true. You must take the same total amount whether you take it from one IRA or all of them. You can eliminated the IRAs one by one if you like.
The size of distribution required has nothing to do with the number of IRAs, so it is difficult to see where there would be any more flexibility.
Best wishes, Chris

My understanding is that to the IRS, you have one IRA. Your withdrawal is based to the sum of how ever many accounts you may choose to have for your IRA. They aren't stupid.

cliff
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cliff666 writes,

<<"The IRS formulas for calculating the size of the distribution may give a number that is more than you wish to take out each year. Splitting the IRA and taking a distribution from only one of them provides more flexibility. ">>

Crosenfield: I don't see how this would be true. You must take the same total amount whether you take it from one IRA or all of them. You can eliminated the IRAs one by one if you like.
The size of distribution required has nothing to do with the number of IRAs, so it is difficult to see where there would be any more flexibility.
Best wishes, Chris

Cliff666: My understanding is that to the IRS, you have one IRA. Your withdrawal is based to the sum of how ever many accounts you may choose to have for your IRA. They aren't stupid.


It depends on what kind of IRA distributions you are talking about. For required minimium distributions (RMDs) at age 70-1/2 you must add all of your traditional IRAs together to make the calculation if you have more than one.

For SEPP distributions before age 59-1/2, you can split your IRA into several accounts and only make a SEPP distribution from one of them.

intercst
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You must take the same total amount whether you take it from one IRA or all of them. You can eliminated the IRAs one by one if you like.
The size of distribution required has nothing to do with the number of IRAs, so it is difficult to see where there would be any more flexibility.


Here's one explanation. Note the last couple of paragraphs in particular. I actually got my explanation from my financial advisor.

http://subscript.bna.com/SAMPLES/dtr.nsf/0/9cea9df76a2aa37385256cdc00111685?OpenDocument

The IRS has ruled that you can calculate a 72(t) substantially equal periodic payment (SEPP) distribution based on the balance in one particular IRA. You have to "freeze" that IRA, at least in the sense that you can't make additional contributions to it, nor can you move money between it and any other qualified accounts you may have. You are correct with respect to other types of distribution, such as towards purchase of a house -- you can take one such distribution, not one per IRA.
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