Planning (e.g., retirement, college) / Retirement account issue - can I open a Roth IRA when I already have an IRA?
Sep 28, 2021
Retirement account issue - can I open a Roth IRA when I already have an IRA?
My wife and I are in our early to mid 30s and have IRAs. I work, she doesn't. But I'm thinking of opening Roth IRAs instead because we qualify. Kicking myself for not thinking clearly about this before when I saw opening an IRA online. What should we do now? Are there any rules around having an IRA and a Roth IRA? Please share your wisdom as I hate calling customer service reps and figuring it out online! Thanks a lot.
Replies (4)
Sep 28, 2021
Yes you can. You can't contribute to both but both accounts can be open simultaneously. One thing you might want to consider if you think your earnings are only going up from where you are today is to convert the traditional IRA to a Roth. You'll have to pay back taxes on your contributions and it may be worth doing depending on your ability to pay those taxes and future earnings potential.
You may find this lesson relevant and helpful.
Click on it below and a new tab will open and take you directly to the lesson.
IRA Fast Facts
Planning
8 min
Oct 01, 2021
@CindyBee This is how I understand it too. You can only contribute to one of your IRA accounts (Trad or Roth).
Oct 11, 2021
@CindyBee That was helpful! I didn't think about having to pay back taxes.