No. of Recommendations: 0
1. I recently quit a job and rolled my 401k distribution into a rollover IRA. I've read that if I touch this money, ie add to it, invest it, etc., I won't be able to roll it back into my new company's 401k plan. True or False?

True to a point. So long as you don't add or subtract money, you're free to invest it any way you please without losing the ability to move it into your next 401(k), assuming your next 401(k) accepts rollover contributions.

2. Maybe a stupid question, but how many IRA's is a person allowed to have? ie can you have two Roths, two traditional IRA's, etc.? (i know you can have a roth and a traditional IRA, provided you dont have a 401k plan) - right?

You can have as many as you like, but can only contribute $2000/year among them all. If it makes you happy, open 1000 traditional and 1000 Roth IRA's every year and contribute $1 to each. Now, thousands of $1 balances would be impossible to invest and track, but you're allowed to do it. Be aware that things like the $10,000 first-time home buyer exception are similarly the total you can take from all IRA's. Rarely does it make sense for anyone to have more than 1 Roth or more than 1 traditional. Many have 1 of each.

It's certainly possible to have a Roth IRA, a traditional IRA, and a 401(k). It gets complicated to figure out who can invest how much into each of these vehicles and how much of the traditional contribution is deductable, but you can thank your friendly Congress-people for that.
Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.