Can I have both a Roth and a traditional IRA

[mommyof4]

Can I contribute to a Roth and a traditional IRA simultaneously?

Thank you.

[poundwise]

Yes, but you can only contribute the annual max in total.

For example, the 2008 limit was/is $5k. If you have a Traditional IRA and a Roth IRA and you've contributed $3,500 to the Traditional, you can only contribute a max of $1,500 to the Roth in the same tax year.

[disneysteve]

Just confirming what poundwise said.

[boosami]

There are also different income caps on the two different types of IRAs. There are no income limits for a Traditional IRA, but you can't have a Roth if you are ineligible due to income restrictions. Roth IRAs are phased out for singles starting at $105k with complete ineligibility after $120k. For couples, the phase out starts at $166k with ineligibility is after $176k. (MAGI numbers.)

[mommyof4]

Thank you for the replies.

[jIM_Ohio]

Originally Posted by boosami

There are also different income caps on the two different types of IRAs. There are no income limits for a Traditional IRA, but you can't have a Roth if you are ineligible due to income restrictions. Roth IRAs are phased out for singles starting at $105k with complete ineligibility after $120k. For couples, the phase out starts at $166k with ineligibility is after $176k. (MAGI numbers.)

And these limits change if its a spousal IRA and the spouse is not covered by an employer plan.