If I have an existing Roth IRA (say with mutual fund manager A as custodian), can I open a *second* Roth IRA with a different custodian?

In other words, if I have a Charles Schawb Roth IRA, can I open a Roth IRA with Fidelity also, as long as my total contributions to the two Roths don't exceed $3,000 each year?

Thanks.

YES

While YES is the answer to the question, you may want to consider a few other factors.

1) If your custodian charges annual fees you might eliminate fees by building assets with one custodian. For example, some custodians waive fees if assets are greater than 5k or 10k.

2) In a few instances, you may have trouble meeting minimum initial balances of a few mutual funds. While many have very low initial balances for IRAs, you should check on any specific fund in which you are interested.

3) What more paperwork? It is easier to track your investments if you don't split up your funds excessively. Two IRAs for you, two for your wife, a teenager account, brokerage, 401k.... don't let your paperwork get unmanageable. I volunteered to help a divorcing women sort through her finances... we were still identifying misc. accounts on the third meeting. And... the more accounts you have the more jumping around from web site to web site with multiple passwords if you are an active investor, it can drive you nuts.

{If you are paying an annual fee for your IRA, you might want to "ask" for the fee to be waived. Some custodians will waive fees if asked.}

Of course, many custodians do not charge any annual fees.