More than 1 Roth IRA?

[permitivity]

Hi,
I've done some reading on Roth IRA's. I'm 25, and I know I should have one!

Can I have two?

I signed up an account with eTrade (that's my broker correct?). I haven't funded the account yet.

Can I leave eTrade empty and sign up for another Roth IRA with, say Ameritrade?

Is there even such a thing as "a Roth IRA account", or is the aggregate of your Roth IRA's count as YOUR Roth IRA?

Does that make sense?

Thanks!

[sweeps]

Yes you may open as many Roths as you want. However total contributions to all IRAs cannot be more than $4,000.

[jIM_Ohio]

A person really has only "1 Roth IRA" and that single IRA can have multiple custodians.

You can contribute $4000 each year to your single Roth IRA, split amongst custodians how you see fit.

Remember that the contribution limit increases to 5k in 2008.

[LuxLiving]

Expanding a bit on Sweeps answer -

You can have as many open as you want BUT...

For 2006 - Total contributions for ALL accounts can not be more than $4000 in one year if you are under 50. If you are over 50 you can contribute up to $5000 per year total for ALL accounts. The additional $1000 is called a catch-up contribution.

Still the same for 2007, I believe - yes?

I'd open ONE at a decent brokerage house where you can make your selections from many different funds.

[sweeps]

Originally Posted by jIM_Ohio

A person really has only "1 Roth IRA" and that single IRA can have multiple custodians.

Semantics.

[jIM_Ohio]

Originally Posted by sweeps

Semantics.

Maybe... but at same time it prevents a person from thinking they can send 4k in 2007 to T Rowe and 4k to Vanguard because they have "one IRA" with each.

A person has one IRA, which can be contributed to each year. I've read others here suggest an IRA is a "bucket" to hold assets in... good analagy... a person can have only one IRA bucket, and that bucket has a yearly contribution max (depending on type of IRA).

[permitivity]

Thanks.

I dont' know...still bouncing back and forth between eTrade or Ameritrade. This would be so much easier if there is a law to make them BE more up front about fees and stuff. I don't know if I'm just not clicking on the right link or what.

I hate companies.

[jIM_Ohio]

T Rowe Price will charge you $10 for an account with less than $5000. That's all, nothing else.

Keep looking for a custodian.