IRA accounts

Forum|Forum|3 years ago
January 12, 2023
1 reply
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Is it possible to have more than 1 IRA account ?

is there any tax benefit from having more than 1 IRA account ?

ItsDeductible Online

dmertz

Level 15

"Is it possible to have more than 1 IRA account ?"

Yes.

"is there any tax benefit from having more than 1 IRA account ?"

No. For tax purposes your multiple IRAs of the same type, traditional or Roth, are treated as a single account. (Of course traditional IRAs and Roth IRAs are treated separately from each other.)

Critter-3

Level 15

Sometimes it's desirable to have IRAs and different brokers or Banks due to the size of them. If you have them in a bank invested in a CD and it's FDIC insured then there's limitation as to how much insurance is allowed per account. I have several high net worth clients that have a dozen or more bank accounts where their IRAs are spread around due to the FDIC insurance limitation. Otherwise there's no real benefit to having more than one IRA. Having several in different places can be confusing and or hard to manage and as you get older you can forget where you have your money. When it comes time to take rmd distributions you could miss a few which could be costly.