Q: I am a faithful listener to Money Matters and have a question about Roth IRAs. My husband and I both have Roths at TIAA-CREF. We want to open one at Vanguard. We have not contributed for 2013 or 2014. Can we open one at Vanguard and leave the one at TIAA-CREF alone, or do we have to transfer the money to Vanguard? Can you have multiple Roth IRAs as long as you don’t contribute to both in the same year? Thank you.
A: Thank you for your listening to Money Matters, we appreciate your patronage.
With regard to your question, it might be easier to think of it this way…You and your husband each have just one (1) Roth IRA, but you may have multiple Roth IRA accounts. So, you and your husband can each have a Roth IRA account at TIIA-CREF and a Roth IRA account at Vanguard. Does this make sense?
What is important to remember are the contribution rules:
If you are younger than 50 you can contribute up to $5,500 total (2014)
If you are over 50 you can contribute up to $6,500 total (2014)
If you are married filing jointly (2014):
- < $181,000 MAGI; up to the limit
- > $181,000 but < $191,000 MAGI; reduced amount
- > $191,000; zero
If you are married filing separately (2014):
- < $10,000 MAGI; reduced amount
- > $10,000 MAGI; zero
You have until April 15, 2014 to make your IRA contribution for 2013.
If my response is unclear or you still have questions, give me a call at 404-531-0018. I’m happy to explain this if it’s still confusing.