2 Roth IRA ?

argo · #1 (**permalink**) 11-05-2006, 12:02 PM

People,

Is this possible to have two Roth IRA?
What are consequences tax-wise?

Wouldn't be an easy answer to Roth IRA yearly limit (4K per year)?

What are thoughts on the subject?

Thanks!

meaghanchan · #2 (**permalink**) 11-05-2006, 12:36 PM

Well, you could have 2 Roth IRAs (like at 2 different companies) but your total yearly limit (for all combined IRAs) is still $4000.

tinapbeana · #3 (**permalink**) 11-05-2006, 01:01 PM

if you're married, i believe you and your spouse can each have a roth and those would each have a 4k limit. someone pls correct this if i'm wrong!

Ima saver · #4 (**permalink**) 11-05-2006, 01:09 PM

No you are right, you can each have one and one spouse does not have to work either. But the limit is 4K each unless you are over 50!

argo · #5 (**permalink**) 11-05-2006, 01:38 PM

Can they both be on my name? Or should the other one be on hers? She does not have social security.

genmed · #6 (**permalink**) 11-05-2006, 01:52 PM

If you are setting up two different IRAs to get the 4k maximum in each one =8k total, one would have to be in your name and one in your spouses name. No matter how many IRAs you have, the total contributions you can make in a given year in your name is limited to 4k.

creditcardfree · #7 (**permalink**) 11-05-2006, 02:01 PM

Quote:

Originally Posted by argo

Can they both be on my name? Or should the other one be on hers? She does not have social security.

One $4000 contribution per person per year. She may be able to get an account by filling out an I-9 Form. This is an IRS form. I would contact the mutual fund company you will be investing with. If you are married, she doesn't need to have earned income. Otherwise, she would need to have at least $4000 in earned income.

The $4000 may be contributed in different funds or different companies. It's the total the IRS looks at each year. The mutual fund company will send you and the IRS a Form 5498 in May or June showing your contributions for the previous tax year.

TBH · #8 (**permalink**) 11-09-2006, 01:10 PM

Ditto others' comments, and another point.

Beware of the added expense of having 2 Roths in one person's name. Are you paying annual maintenance fees for both accounts? If so, you may want to consolidate. Also, it makes it harder to look at your asset allocation if your money is spread around too much.

Ima saver · #9 (**permalink**) 11-09-2006, 01:25 PM

Can you get a ira without a social security number?

argo · #10 (**permalink**) 11-09-2006, 01:55 PM

When I spoke to Vanguard, they told me that you can if you have something like a taxation number. I'm not sure about the name though.

sweeps · #11 (**permalink**) 11-10-2006, 04:05 AM

Taxpayer Identification Numbers