How many Roth IRA's can an individual have?

[Guest Mikelly22]

My wife currently has a Roth IRA with Edward Jones. The funds for this Roth were rolled over from a previous employer's 401k plan. My wife has since left a second job and has another 401k plan that we would like to rollover into an IRA then a Roth.

My question is can we open up a second IRA account with a brokerage firm other than the established Edward Jones account, or will this 401k plan need to be put into the Edward Jones account?

Thanks to all that reply!

[John G]

There are no IRS limitations on the number of IRAs, Roths or rollover IRAs you can have. Yes, you can go ahead and have two different IRAs based upon what you have written.

There are practical considerations such as annual fees, account tracking, types of services offered, etc. that are more likely to shape you decision.

Please note, while you can own multiple IRA or Roth accounts, the contributions maximum is set for the combination of all accounts. This does not apply to your situation, but a novice reader might think they can open multiple IRAs, each with $3k contribution.... we have been asked this before.

[Guest Mikelly22]

Thanks John G!

Yes I did realize that there is a maximum yearly contribution and that that did not apply here for conversions. We are just wanting to get this new plan into a different brokerage account like scottrade et al with lower trasnaction fees, since we plan to manage it ourselves.

What do you know about moving funds from one Roth IRA into another. For example if we wish to move the funds from the Edwards Jones account into the newly established Scottrade account?

[John G]

While there are a number of ways to do this, the single best method is a direct custodian to custodian transfer. You start with the custodian that will receive the funds/stocks and fill out a form indicating the "source". They usually ask for you to attach a copy of the last month's statement. You turn that in to the new custodian and they process it in usually about 6-15 days. Your job is to monitor that it is done correctly. You may request all components to be transfered "in kind" or all positions sold and transfered as cash. The first is often preferable.

Note, you may have termination fees for the closed account (like $50 for some brokerages) and fees for loaded mutual funds.