2 Roth IRA's?

[sneezel22]

Hey All,

I have a very simple question, that I suspect I know the answer to, but just want to make sure.

Is it possible for one person to have two Roth IRA's?

My reasoning:
I currently have a Vanguard Roth IRA that I have put 10,000 into (5k in 2011, 5k in 2012). Being Vanguard, this is obviously all invested in mutual funds.

However, I am considering a different approach. Because of the tax free gains, I am thinking I may want to open a Roth IRA through an online brokerage (like Ameritrade) and then trade more actively (stocks) within that account.

I like my Vanguard account and the mutual funds I own through them. Come 2013, if I want to drop 5k into an Ameritrade Roth IRA, will I have to close my Vanguard account? Or can I have both?

Thanks,
E

[maat55]

I'm guessing you could establish a self-directed roth IRA and contribute up to your limit in any investment form allowed.

[sblatner]

You can have more than one Roth IRA...you just can't contribute more than $5k for under age 50 or $6k for over age 50. Do you know Vanguard has a brokerage division? I don't know the fees they charge but you can buy stocks with them.

[jpg7n16]

Like sblatner said, people can have more than 1 account, but the $5k limit is total IRA contributions across all your IRA accounts. (Traditional and Roth combined)

Since you have already contributed the max, you cannot contribute any more for the year, so opening a new account is pointless. Or well, You also have the option of doing a partial transfer of assets from Vanguard to Ameritrade. Or to start trading at Vanguard, though if you're a high frequency trader, the commissions there may be higher than other firms. (depending on your asset level)

Your best bet, especially since you want to do active trading, would be a taxable account with margin.


What has you interested in doing some active trading?