Can you have more then one IRA through different companies?

[LordJezo]

Is that allowed?

I have one with eTrade for various stocks and funds and what have you and want to open a second one directly through Vanguard so I don't have to pay any fees to get into the Vanguard funds.

 

[FuzzyBee]

Yup.

 

[dnuggett]

Yes, but you may not collectively pass your contribution limits in any combination.

 

[LordJezo]

Originally posted by: dnuggett
Yes, but you may not collectively pass your contribution limits in any combination.

What happens if I do?

Not that I want to but what would happen?

 

[Nitemare]

Originally posted by: LordJezo

Originally posted by: dnuggett
Yes, but you may not collectively pass your contribution limits in any combination.

What happens if I do?

Not that I want to but what would happen?

You probably get reamed in taxes

 

[sygyzy]

You'd have alot more problems then just getting reamed in taxes. It's illegal.

 

[Nitemare]

Originally posted by: sygyzy
You'd have alot more problems then just getting reamed in taxes. It's illegal.

I thought they only cared if you were rich and famous

 

[dnuggett]

Originally posted by: LordJezo

Originally posted by: dnuggett
Yes, but you may not collectively pass your contribution limits in any combination.

What happens if I do?

Not that I want to but what would happen?

You would be subject to a 10% penalty on the overage amount plus taxes that almost always work out to be in a higher % than your normal income tax rate if we are talking about a traditional. If we are talking a Roth then obviously anything over your contribution amount will not come off your income (defeating the purpose) and then the penalty and applicable taxes would be applied. I wouldn't worry too much about the illegal part of it, it happens, and mostly because of an honest mistake.

 

[Nanotech]

Originally posted by: fuzzy bee
Yup.