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can one have multiple Roth IRA accounts

currently, I have a roth ira with vanguard and traditional ira with dreyfus

is it possible to open another roth ira for example with schwab and take some portion of roth money market fund money from either vanguard/dreyfus and transfer it to the new roth ira (ie. schwab) ?

not sure if there is a rule preventing multiple places to have a roth ira if one still keep at annual contribution limits for the combined total, ie. 3000 at vanguard and

1000 with schwab

why would I do this? it's simple really, there are some funds available where I would like to park long-term about 1 or 2% of my total portfolio but still keep it within the retirement account (roth ira) annual limits

Reply to
mnn
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-- Rich Carreiro snipped-for-privacy@rlcarr.com

Reply to
Rich Carreiro

You can have as many different IRA accounts as you want, so long as you keep under the total contribution limit. However to take money from your traditional IRA (Dreyfus) and move it to a Roth IRA is a taxable event.

Reply to
PeterL

I don't see why not. Partial rollovers are not uncommon and you can usually have as many accounts as you please. As long as you do not exceed the annual contribution limits and you are eligible to contribute there should be no problem.

Certain companies are notorious for doing just that. Edward Jones, for example, has a bad habit of having multiple agencies in a small demographic area and high agent turnover. As a result, each agent calls the same set of prospects and each agent opens a new IRA if they have a successful pitch. As a result, some less informed investors will end up with five different accounts over five years all with one annual contribution in them and all with the same company. Absolutely nuts I tell ya!

Reply to
kastnna

the disavantage I see is that fees decline and perks increase as one has higher balances in a the same place.

Reply to
rick++

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