Can You Have More Than One Roth IRA?
Roth IRA (Photo credit: Philip Taylor PT)
A Roth IRA is an investing account where you put your after tax retirement money. This money you invest hopefully grows and produces a positive return. The tax benefits of it are the growth of the money is tax free; unlike a regular investment account in which you must pay taxes on any growth. Roth IRA’s are perfect investment vehicles to hold your retirement savings.
Every year you are allowed to contribute a maximum of $5,000. If you are 50 or older you can contribute a maximum of $6,000. If you wait till you are 59 1/2 to with draw the money you won’t have to pay any taxes on the growth. You are allowed to remove any part of your initial contributions without penalty or tax.
There are no limits to the number of Roth investment accounts you may have. You can have an account at as many brokers or banks as you wish. Some people do this to take advantage of the different investment choices or investment styles at different brokers. Having your money distributed in many different places gives you diversity and safety of not having all money with one broker company.
Even though you have several accounts you still are limited to contributing only $5,000 per year. Having multiple accounts lets you open an account at a bank for CD investing. Having another at a low cost brokerage lets you satisfy your need to purchase stocks and ETF’s. Other accounts can be a private investing firms where you like a particular investment only done there.
ROTH IRA’s are a great way to save for retirement. If you prefer to have investments that you will not owe taxes on upon withdrawal, Roth’s are what you need. A great source for ROTH IRA information is rothiraresource.net
Category: Roth IRA
The IRA is a good way to go, especially for people who aren’t eligible for a 401(k) account through an employer. It’s unfortunate people aren’t eligible for those, but we have to work with what we have, not what we wish we had. Learn more about IRAs at http://www.mutualfundstore.com/individual-retirement-account-ira. You can also find about other types of investments.