Contributing to both Traditional and Roth IRAs:

[Guest Thor Anderson]

I'm learning as much as I can about the Traditional v. Roth discussion, but have yet to hear anything on the advantages and disadvantages of contributing to both ($1K in each account annually, $2K total). Any comments?

[John G]

Some disadvantages of split: smaller asset amounts to invest probably restricts choice to mutual funds with low initial deposits and individual stocks would be very cumbersome, split might trigger additional IRA fees, more to track, decisions must be made in two locations (a negative for active traders primarily)

If you are young, the Roth is probably a better option because: you qualify now but may not in the future, Roth rules can change, the longer your holding period the more likely your future income tax bracket is higher, if your income is currently modest your initial tax deduction might be small relative to future tax savings, Roth gives you greater flexibility over the timing of withdrawals.

The split approach does not seem to offer much of an advantage. I would opt from keeping it simple.