Can you contribute to two IRA's in one year?

[Thrif-t]

I'm not sure can I contribute 4k to a Roth and 4k to a regular ira for 2007 or only one or the other

[sweeps]

You can contribute to as many IRAs as you like. However, the total contribution to all your IRAs must be no more than $4K.

[Thrif-t]

Crap, not the answer I wanted! I inherited a liittle IRA from my mom and thought I would cash it out then open an IRA for my self and one for my husband with the money (didn't want to mess w/an inherited IRA and taking the required distributions every year, she was 77)...I already contribut to a Roth, guess I can still open one in his name but I was looking for that 8k deduction on my taxes to offset, drat. Thanks anyway though.

[sweeps]

Not sure if I totally understood your post but just wanted to clarify the $4K limit is per person. So you are given a $4K limit and your husband is given a $4K limit. (Given some assumptions of course... that both of you have earned income and you are within the income limits for contributing to a Roth, etc. etc.)

[Thrif-t]

Ya ya ya..I understand that, but since I already contributed 4k to a Roth in '07 I can't contribute another 4k to a regular IRA in my name...only one for him in his name. Gotcha, thanks. Still sucks

[sweeps]

Ok. Just a few possible workarounds...

-- Can you wait 50 days or so? 2008 will be here soon. $5K limit for you and $5K limit for your husband.
-- Do either of you have a small business? Small business retirement plans (e.g. SEP IRA) let you stash away much more.
-- Do either of you have a 401k (and are not maxing it out)? You can for one pay period crank up the contribution to offset the extra money you're getting.

[Thrif-t]

Ok. Just a few possible workarounds...

-- Can you wait 50 days or so? 2008 will be here soon. $5K limit for you and $5K limit for your husband.
-- Do either of you have a small business? Small business retirement plans (e.g. SEP IRA) let you stash away much more.
-- Do either of you have a 401k (and are not maxing it out)? You can for one pay period crank up the contribution to offset the extra money you're getting.

Thanks for the suggestions, I'll surely max out for 2008 for both of us and 2007 for him. Just wanted it for my 2007 taxes. I have a 401K and no where near maxing out. I guess I"ll look into that idea...THANKS!!!

[anonymous_saver]

I would never cash out an IRA, no matter what kind it is by the way.

Why don't you just roll it over into a a rollover (traditional) IRA by the way? There would be no contribution limits for a rollover.

[jIM_Ohio]

Can an inherited IRA be rolled over into an IRA? I know it can if from a spouse, can it be rolled over from a parent?

[Thrif-t]

Can an inherited IRA be rolled over into an IRA? I know it can if from a spouse, can it be rolled over from a parent?

Since my mom was 77 and in the draw down phase of her IRA we can only roll it over in to an Inherited IRA. I'm one of 5 and my cut is around 9k. Looking at the table for my age I have to take somewhere between 150-200 in distributions/year. I just didn't want to mess with doing that every year. I'd rather take the lump and invest it myself. I figured if I opened an ira for me and one for my husband theres 8k right there to right off my taxes, but since i can't do it for me (already maxed out Roth) I'll open for him and put 100% in my 401k for the rest of the year and now I think I'm settled. Sorry kinda got OT from your question and answered another poster on why cashing out.