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[[Is it allowed for an individual to have multiple Roth IRA accounts at different institutions?]]

Yup...sure is. You can have as many IRA accounts (both regular and Roth) as you might like, in as many places as you might like. This practice may eat you alive in annual administrative fees on each account, but there is nothing in the law to prevent it.

But you MUST remember, no matter how many accounts you may have, Uncle Sammy requires you to treat your IRA as one big IRA account. That requirement may impact your future distributions and conversions.

[[ And if so
are you still limited to the $2000 total annual contribution?]]

Yup...you sure are.

[[ I have also heard it is possible to
deposit $4000 in one year because of the tax cut off dates. If true what are those dates. Any
information you may have would be helpful. Thank you.]]

Well, you have until April 15th in order to make your 1998 IRA contribution (either Regular or Roth). And you can make your 1999 contribution beginning as early as January 1st.

So, between January 1, 1999 and April 15, 1999 you could make a $4k contribution ($2k for 1998 and $2k for 1999) and still be within the law that restricts your contribution to $2k per year.

But the longer you wait to make your contribution, the more tax deferred income you will lose. In general, the earlier you make the contribution, the better off you are.

TMF Taxes
Roy

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