Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
<<<<<
Are there any legal restrictions, or other rules which prevent having a 401k and an IRA at the same time? About about multiple IRAs?
>>>>>

No. You can have as many 401(k)'s and IRA's as you want. However, the contribution limits for each account reflect the total contribution to all accounts.

For instance, you can put up to $10,000 in a 401(k) each year. If you had two jobs, each with a 401(k), you could contribute to both, but the sum of the contributions made at each job would be $10,000.

With IRA's, the limit is $2,000, but you can put that in as many Roth or traditional IRA's as you'd like-- open 2000 IRA's with a $1 deposit in each if you'd like. When you go to take money out, the IRS lumps all the IRA's together. This means, fonr instance, that you couldn't take 2 $10,000 'first-time home buyer' distributions if you held 2 separate IRA's.
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
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.
Advertisement