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My wife and I both have Roth IRAs, and my kids have Education (Coverdell) IRAs. My wife's is with Dodge and Cox; mine and those of my kids are with Oakmark. The IRAs are doing well, but I want to diversify rather than putting money in the same fund every year. Can I just leave the IRAs alone and start investing in another Roth IRA? For instance, if I invested $1000 in my Roth IRA this year, can I send $2000 to open a new Roth IRA with a Vanguard fund in the same year? And could I send $3000 next year to fund my Oakmark Roth IRA and $3000 to Vanguard the year after that? Thanks.

Yes, this is certainly possible. The only contribution restriction is that you do not exceed the annual limit across all of your accounts combined. For instance, you could contribute $1 to 3000 different accounts if you so desired.

So you can certainly send $2000 to a new IRA if you have a $1000 contribution in your existing IRA. In future years, you could either split the contribution with half to each account or do the alternating years like you mention.

Hope that helps.

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