Checking | Auto Loans | Mortgage | HELOC | Personal Loans | Credit Cards | Membership

Can you have multiple Roth IRAs?

While it is possible to have multiple Roth IRAs, there are still limits as to much how you can contribute on an annual basis.

At Credit Union of Southern California (CU SoCal), we make it easy to open an IRA account!
Call 866.287.6225 today to schedule a no-obligation consultation and learn about our mortgages, home equity lines of credit, auto loans, personal loans, checking and savings accounts, and other banking products. As a full-service financial institution, we look forward to helping you with all your banking needs.

Get Started on Your IRA Today!

What is a Roth IRA?

A Roth IRA is a type of retirement account that allows your monetary contributions and interest earnings to grow tax-free.
Because a Roth IRA account is funded with after-tax dollars, the account will grow tax-free. This is one of the features that makes Roth IRAs so popular. The Internal Revenue Service (IRS) has set income and account contribution requirements, as well as rules regarding who can open a Roth IRA and when money can be withdrawn from a Roth account. Qualified withdrawals are tax and penalty-free.

Roth IRA eligibility requirements

There is no age limit or age requirement to open a Roth IRA. However, there are Roth IRA income limits.
To open an account, you will need to complete an application with the financial institution of your choice and provide proof of identity and your social security number.

How many Roth IRAs can I have?

There is no limit on how many Roth IRAs (or traditional IRAs) a person can have. However, the IRS limits the number of annual contributions that can be made.

Pros and cons of having multiple Roth IRAs


Investment diversification. Having more than one Roth IRA is a way to diversify your investments through accounts with different financial institutions that may offer different investment options.

Tax diversification. Open a Roth and a traditional IRA and you’ll have a mix of tax benefits. Roth IRA earnings grow tax-free and qualified withdrawals are tax- and penalty-free. Traditional IRAs are funded with pre-tax money, making withdrawals taxable.

Inheritance and estate planning. There’s no income tax on inherited Roth IRAs, which means beneficiaries are not taxed on a Roth IRA account they inherit.

Withdrawal flexibility. Unlike a traditional IRA, a Roth allows you to withdraw your original contribution amount after a five-year holding period. Roths don’t require the account holder withdraw money when they reach a particular age, so your money has more time to grow.

More insurance coverage. The Securities Investor Protection Corporation (SIPC) insures up to $500,000 per account.


More paperwork. More retirement accounts means keeping track of more documents, more earnings, and more potential losses. If you don’t have time to manage many investments, more than one Roth IRA could be challenging and a potential for loss of assets.

Portfolio maintenance. Again, having more accounts to track can be burdensome, and you will need to annually review your asset allocations in all accounts to make sure your financial goals are being met and that your money is working for you.

Investment fees. Many financial institutions and investment companies charge annual account maintenance fees, trade and transaction fees, and other account fees. Fees may chip away at the interest your account is earning.

IRA contribution limits

While it's possible to have multiple Roth IRAs, the IRS considers multiple IRA accounts as a single account, meaning the combined contributions in multiple accounts cannot exceed the annual limits set for IRA accounts.
The most you can contribute to all your traditional and Roth IRAs is the smaller of these dollar amounts:

For 2023: $6,500, or $7,500 if you’re age 50 or older by the end of the year; or your taxable compensation for the year.

Is it worth it to have more than one Roth IRA account?

Whether or not you choose to open multiple Roth IRA accounts is a personal decision that can be made based on your age, income, and retirement savings goals. While there is no limit to the number of Roth IRAs, it may not be worth it to have more than one account because your annual total cash contributions cannot exceed the annual contribution limits allowed by the IRS.

When does it make sense to have multiple Roth IRAs?

Diversification of investments is a key principle to investing success, so having more than one Roth IRA may help you diversify if the investments offered by one account provider are limited. In this case it may be beneficial to open a second Roth with another account provider who offers more of the types of investments that you’re seeking to add to your portfolio.
If you anticipate giving a Roth IRA as an inheritance to more than one beneficiary it makes sense to open a second Roth IRA to simplify the distribution of your assets.

Why savvy consumers choose CU SoCal

For over 60 years CU SoCal has been providing financial services, including mortgages, Home Equity Loans, HELOCs, car loans, personal loans, credit cards, and other banking products, to those who live, work, worship, or attend school in Orange County, Los Angeles County, Riverside County, and San Bernardino County.

Please give us a call today at 866.287.6225 today to schedule a no-obligation loan consultation with a CU SoCal Member Services specialist.

Get Started on Your IRA Today!

Help + Support


Co-Browsing Code

Building Better Lives

Credit Union of Southern California (CU SoCal) is a leading financial institution empowering those who live, work, worship, or attend school in Orange County, Los Angeles County, Riverside County, and San Bernardino County to reach their goals and build strong financial futures. CU SoCal provides access to convenient money management services and offers competitive rates and flexible terms on auto loans, mortgages, and VISA credit cards—turning wishing and waiting into achieving and doing.


562.698.8326 | 866 CU SoCal Se Habla Español