|
|
 |
|
Question:
Can
I have more than one IRA account if the total contributions
do not exceed the limits?
Holly
|
|
Answer:
Dear
Holly,
The
answer is "yes." You can have more than one, as long
as your contributions are under the dollar cap. This
year, you can contribute a total of $3,000 to one
or several IRAs; $3,500 if you are 50 or older.
Some
people like to have more than one IRA so they can
leave their retirement accounts to more than one person.
However, if you are married and you live in a community
property state, you need your spouse's consent to
name someone other than your spouse as beneficiary.
The community property states are: Arizona, California,
Idaho, Louisiana, Nevada, New Mexico, Texas, Washington
and Wisconsin.
About
beneficiaries
IRAs
are "beneficiary-designated" assets. That means they
are not included in the probate part of your estate
and the named beneficiary will have access to the
account faster than if it went through probate.
The
beneficiary, in fact, will receive your IRA regardless
of your will or other documents in your estate plan.
And, you can change your beneficiary at any time.
If your primary beneficiary has died, the account
will go to the second or contingent beneficiary.
Two
words of caution
If
you do not have a properly designated beneficiary,
your IRA becomes part of your estate.
If
you have divorced but your ex-spouse is still named
as the beneficiary, the IRA will go to your ex.
Custodial
fees
Keep
in mind that you pay an annual custodial fee for each
account. Here at BUYandHOLD that fee is $25. So you
obviously don't want to run up too many fees even
though the fee is tax deductible, provided you pay
it with a separate check.
I
also think tracking and managing more than two IRAs
is time consuming for most investors. So don't go
overboard!
A
final word...
If
you converted your traditional IRA to a Roth IRA in
1998, the first year the Roth was available, you can
now make penalty-free withdrawals of your money for
the first time. That's because the 5-year holding
period expired on January 1, 2003.
Good
luck!
|
|
The BUYandHOLD website contains links to third-party websites on the Internet. BUYandHOLD provides these links to these websites only as a convenience to users of the website. Links on the BUYandHOLD website are not endorsements by BUYandHOLD or Freedom Investments, implied or express, of the linked sites or any products, services or links in such sites; and no information in such sites has been endorsed or approved by BUYandHOLD. Linked sites are not under the control of BUYandHOLD or Freedom Investments, and we are not responsible for the contents of any linked site or any link contained in a linked site. No information contained in the BUYandHOLD website or accessed through any linked site, or any link contained in a linked site, constitutes a recommendation by BUYandHOLD or Freedom Investments to buy, sell or hold any security, financial product or instrument. Information accessed through linked sites is not, nor should be construed as, an offer or a solicitation of an offer, to buy or sell securities by BUYandHOLD or Freedom Investments. BUYandHOLD does not offer or provide any investment advice or opinion regarding the nature, potential, value, suitability or profitability of any particular security, portfolio of securities, transaction or investment strategy, and any investment decisions you make will be based solely on your evaluation of your financial circumstances, investment objectives, risk tolerance, and liquidity needs.
Copyright
© 1999 – 2012 Freedom Investments. All Rights Reserved.
Freedom Investments, Inc. Member FINRA/SIPC
Privacy & Security
|
