Getting Personal
Roth-IRAs
Question: I'm not quite sure I understand Roth IRAs. I know there's a limit to what you can contribute each year, but is there a limit on how many Roth IRA accounts you can have? Bridget. Sioux Falls, SD
Answer: There is no limit on the number of Roth-IRA accounts can own. But it could turn into a nightmare to manage multiple accounts, plus you'd end up paying more and more in fees. I would open up a Roth-IRA with a financial institution or mutual fund company with offerings you like, and then make new contributions into that fund every year instead of creating many accounts.
Most finance companies offer good information about the Roth on their websites. But if you want to go into more depth you could look at "Go Roth! Your guide to Roth IRA, Roth 401k and Roth 403b," by Kaye Thomas.
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Chris Farrell Marketplace Money personal finance guru
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Comments (2)
July 23, 2008 8:09 AM PT
To expand on Chris' comments, the contribution limit applies to all contributions to all Roth accounts for any given year. So if you have 5 Roth accounts and put $1000 in each you have reached the $5000 maximum (for those under age 50). In other words you can't get around the maximum simply by opening multiple accounts. If you do have multiple accounts it is your responsibility to make sure you don't go over the maximum between all the contributions you make.
July 23, 2008 10:16 PM PT
Good point. Thanks. Chris