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Author: Beans1 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 74759  
Subject: Two questions-IRAs Date: 5/20/1999 5:13 PM
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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?

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?

thanks.
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Author: jocave One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 10643 of 74759
Subject: Re: Two questions-IRAs Date: 5/20/1999 5:38 PM
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<<<<<
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.

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Author: Beans1 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 10652 of 74759
Subject: Re: Two questions-IRAs Date: 5/21/1999 11:11 AM
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Thanks for the info. Just to clarify:

1. So if I invest the rollover $, once I'm ready to move it into a new 401k i just sell whatever investments ive made, knowing that there's a risk ill have less than when i started if the investments go down(?) I guess my question is, given that im currently self employed planning on going back to the corporate world next year, should I invest this $ at all or just let it sit till 2000 when I can put it back into a 401k? It's not alot of $..around 4,000.

2. If I have both a roth and traditional ira, i can contribute $2,000 max to each (meaning $4,000 total) or 2,000 max per year total, meaning 1,000 each?

thanks for your patience...I'm not a numbers person.

regards,
the Beanster

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Author: x4a54 Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 10653 of 74759
Subject: Re: Two questions-IRAs Date: 5/21/1999 11:57 AM
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going back to the corporate world next year, should I invest this $ at all or just let it sit till
2000 when I can put it back into a 401k? It's not alot of $..around 4,000.

if you're sure you'll want to put it in the next
401(k), or, i guess, even if you think you'll want to,
i wouldn't recommend stocks... maybe an indexx Fund --
but be sure to check out the *costs* in and out of
the fund.

OTOH: WHY? *i* would rather have the nearly unlimited
options of the IRA vs. the generally very limited menu
of funds provided by typical 401(k).


i can contribute $2,000 max to each (meaning $4,000
total) or 2,000 max per year total, meaning 1,000 each?

NO. $2000 per year TOTAL, regardless of the number
of IRAs.... but: if your income is too high, you
can't put any in Roth, if income is $00, you can't
put any in Trad.; if you 'participate' in a 401(k),
any contrib. to Trad. is non-deductible...
some days i think too many Congress-things must own
stock in H&R Block (-;


jp

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Author: jfruhbauer Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 10655 of 74759
Subject: Re: Two questions-IRAs Date: 5/21/1999 12:06 PM
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>NO. $2000 per year TOTAL, regardless of the number
of IRAs....

Does a 401K roll-over have any impact on a normal contribution? (i.e. if I roll-over $5K from my 401K into my existing Roth, is there any problem still contributing in that same year another 2K to the Roth?)

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Author: tonyw44 Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 10659 of 74759
Subject: Re: Two questions-IRAs Date: 5/21/1999 12:28 PM
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A 401k rollover has no effect on the amount that you can contribute to an IRA of either variety. Remember, the most you can put into those is $2,000 no matter what! You can have 10 IRAs and you can only put $2,000 total into that.

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Author: Selphiras Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 10911 of 74759
Subject: Re: Two questions-IRAs Date: 5/29/1999 6:40 PM
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earlier in this thread someone said "Rarely does it make sense for anyone to have more than 1 Roth or more than 1 traditional. Many have 1 of each."

Am I one of the few who wished to diversify my holdings? I have my Roth spread out in three companies--one for the large/small caps, one for a socially concious fund and one for an international fund. Yes, it does mean paying $30 in fees ($10 per year per company) for the account, but it's worth it to be diversified in the funds I want to be in. I would frankly raise my eyebrows at anyone who put everything all in one company in any case, even if in different funds. No company can be great at all sectors.

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Author: Selphiras Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 10912 of 74759
Subject: Re: Two questions-IRAs Date: 5/29/1999 6:45 PM
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This is a clarification on my last post. I am presently invested in mutual fundd....and was thinking I was reading that board. If someone is only in stocks, it does make sense to have just one account through one broker. Of course, I plan to have the mutual funds plus stocks....so I guess it will be $40 a year in fees. And then the 403/1 fee on top of that. This is getting to be a lot of fees...:(

Selphiras

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