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Author: TMFTaxes Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121598  
Subject: Re: Multiple Roth IRA Accts. Date: 1/19/1999 6:41 PM
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[[I wanted to know if it is possible to have more than one Roth IRA account.]]

Sure...you can have as many separate Roth IRA accounts as you would like. You'll end up paying more in fees each year, but you can certainly do it.

[[ If it
is possible how do I prove that I didn't exceed the $2000 limit.]]

If you are asked, you'll simply produce your account deposit documents.

But you bring up a very good point: Roth IRA abuse.

The financial institutions are SUPPOSE to report your IRA (both regular and Roth) contributions to the IRS on an annual basis. Do they? I'll assume so. Does the IRS match this information to your tax return? I don't know.

If somebody has larceny in their heart, they can certainly try to manipulate the system and see what comes out. If they find that there is no problem, what will stop them from making 10 or 20 Roth IRA contributions each year...generating all of that tax free income in the future.

I'm sure that this is an area that IRS is addressing with the upgrade of their computer systems. But it IS an interesting issue...at least for a tax geek like me.

TMF Taxes
Roy

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