Can one contribute to multiple Roth accounts if one has more than $5,500?

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  • 3 out of 4 people found this answer helpful

    CFP® Vienna, VA

    You can contribute to multiple Roth IRAs; however, your total combined contributions in any given tax year cannot exceed the amount of your annual earned income or the established annual contribution limit, whichever is less.  The contribution limit is $5,500 for 2013 and 2014, and for those who are over the age 50, the contribution limit for both tax years is $6,500.  Furthermore, your eligibility to fund a Roth IRA is determined based on your filing status and modified adjusted gross income for the tax year in which you wish to make the contribution.  For example, in 2014 a married taxpayer under the age of 50 who files a joint income tax return with a spouse can make a full contribution ($5,500) if the modified adjusted gross income on the joint tax return is less than $181,000 and earned income is $5,500 or more.  

    If you cannot fund a Roth IRA because you earn too much, you may consider making after-tax contributions to a traditional IRA.  The same annual contribution limits apply; however, eligibility to fund an after-tax IRA is not phased-out for those who earn higher incomes.  IRS publication 590 provides all the information you need to determine your eligibility and the annual limits for IRA contributions.  http://www.irs.gov/publications/p590/ch02.html#en_US_2012_publink1000253532

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  • 1 out of 1 person found this answer helpful

    CFP® Seattle, WA

    The maximum you can contribute across all IRAs you own is the lesser of $5,500 or your taxable compensation. This does not apply to Roth IRA conversions, where you take a pre-tax Traditional IRA and turn it into a Roth IRA by paying taxes on the converted amount. Also, be sure your income qualifies you to contribute into your Roth IRA -- for example, if you are a single tax-filer your modified adjusted gross income must be below $127,000. There is currently no income-limit restriction for Roth IRA conversions, only contributions.

    If you have multiple Roth IRAs you could split the $5,500 across them, but your total contributions cannot exceed that amount.

    - Brian

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  • 1 out of 1 person found this answer helpful

    CFP® Asheville, NC

    Yes, you can contribute up to the limit each year but only collectively, not per account.  The balance of the account has zero to do with if you can or not.  You can get more consultation by going to the CFP website.

    Best wishes,

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  • 2 out of 4 people found this answer helpful

    CFP® Alpharetta, GA

    One can contribute to multiple Roth or IRA accounts, but cannot exceed the contribution limitations set for a single account Roth and or Traditional IRA, this would also include IRA Rollovers.   For 2013, the contribution limitations for a Roth whether thru a single account, or spread over multiple accounts is $5,500.00 for persons under 50.   For those taxpayers 50 or older your allowed $6,500.00.   Also, remember you have until your tax filing deadline of April 15th, 2014 to take a deduction and make a contribution for Traditional IRA's (if qualified) for the previous year.    The deadline is the same for the Roth, however you obviously don't get the tax deduction because of the tax free growth of earnings versus the tax deferred growth of earnings a Traditional or Rollover IRA carry.

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  • 1 out of 2 person found this answer helpful

    Plymouth, MA

    From your question as stated, I am assuming you are asking about a Roth IRA. Depending on your age, you are capped in the amount you can contribute to one or multiple Roth IRAs. But an equally important part of the question is what is/are the source(s) of your earned income? Are you covered by any additional employer retirement plans? If your are self employed for all or part of your income, there may be additional tax deferred accounts that are available to you which would allow you to contribute more than the limits previously discussed in prior answers to your question.

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  • 0 out of 0 people found this answer helpful

    CFP®, MBA, MSFS Irvine, CA

    No - but you can contribute to a 401k and a Roth. If the 401k allows you to convert to the Roth, try doing that. If your 401k does not have a Roth option - then ask them to put one on. It does not cost anything for them to add it.

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