Can you have multiple traditional and Roth IRAs? What if you also contribute to a 401(k)?

Understand income and contribution limits.

Written byMiranda Marquit

Fact-checked byNancy Ashburn

Three eggs with the inscriptions IRA, 401k, Roth lie in the nest against the background of the 5305-SEP form.

Your nest egg can have several baskets.

Tax-advantaged retirement accounts can help you build wealth for the future and improve your chances of a comfortable retirement. That can make it tempting to open multiple IRAs, including Roth IRAs, which offer a strategy for tax-free retirement income.

But can you actually have multiple Roth IRAs in addition to other retirement accounts? The short answer is yes, but you must be aware of the rules and limitations.

Key Points

It’s possible to have multiple IRAs, including multiple Roth IRAs.
Contribution limits are cumulative, not per account.
Required minimum distributions (RMDs) are calculated on individual accounts.

How many IRAs can you have?

There’s no limit to the number of IRAs you can have. This is also true of 401(k) plans and other tax-advantaged retirement accounts. In fact, some people have collected multiple retirement accounts as they move from company to company and either keep the accounts with their old employer(s) or roll them into a separate IRA.

However, it’s important to realize that just because you can have all of these accounts open, it doesn’t necessarily mean you can contribute to all of them in the same year. Contribution limits still apply, and they limit your total contributions, not each account. (More on this below.)

Why would you want multiple IRAs?

People like the idea of multiple IRAs because they can take advantage of different tax situations. Traditional and Roth IRAs have different structures and different tax advantages.

Traditional IRA: Contributions are made with pretax dollars. Taxes are deferred until distributions are made, at which point they are taxed at your regular tax rate. Traditional IRAs also come with required minimum distributions (RMDs) after you reach a certain age, forcing you to withdraw money and pay any taxes due.
Roth IRA. Contributions are made with after-tax dollars. As a result, the account balance grows tax-free, and you don’t pay taxes when you withdraw money later. Plus, there are no RMDs.

Depending on your situation, a retirement investing strategy that involves both types of accounts can be beneficial. This is especially true if you meet the requirements for a Roth early in your career (when your income may be lower) and then shift to a traditional IRA as your income rises through your working years.

Can you have multiple Roth IRAs?

Because a Roth IRA is a type of IRA, it’s possible to have more than one. However, you must ensure you meet the eligibility requirements in order to actually contribute to a Roth IRA. For 2023, you can fully contribute to a Roth IRA if your modified adjusted gross income (AGI) is less than $138,000 for single filers or $218,000 for those married and filing jointly. If your 2023 AGI is between $138,000 and $153,000 as a single filer or between $218,000 and $228,000 if you’re married and filing jointly, your contribution limit will be reduced.

If you meet the requirements, though, you could theoretically open as many IRAs as you’d like—traditional and/or Roth. These IRAs can also complement any 401(k) accounts you might hold through current and past employers.

How much can I contribute to multiple traditional and Roth IRAs?

If you can open multiple IRAs, including multiple Roth IRAs, what’s to keep you from opening a lot of IRAs and maxing them all out? The short answer: the rules.

Contribution limits: How they work and where they apply

Contribution limits—and catch-up provisions for savers over age 50—vary greatly with each type of account, as do the tax implications. Learn more about contribution limits and view a handy table.

The IRS places contribution limits on IRAs. For example, in 2023, your IRA contribution limit is $6,500. The IRS can increase that in future years, but each year you’re limited on how much you can put into an IRA. And that limit is cumulative, not based on each account.

If you have five IRAs, including Roth accounts, you can only contribute a total of $6,500 to all the accounts in 2023. You can divide that $6,500 however you want, but the total amount you put in all of your traditional and Roth IRAs can’t exceed the contribution limit.

This also applies to catch-up contributions. For those age 50 and older, it’s possible to make an additional contribution of $1,000 in 2023. That brings the cumulative total to $7,500 for some savers. But, again, that’s the total—you can’t make a catch-up contribution for each individual account.

What about 401(k) contributions?

Likewise, 401(k) contributions are subject to cumulative limits. You can have multiple 401(k)s, including a Roth 401(k). However, your total 401(k) contributions across your accounts can’t exceed your annual limit. This applies even if you change jobs. If you already maxed out your 401(k) contribution to a plan at one employer and then get a new employer, you can’t make more contributions until the following year. In 2023, you can contribute $22,500 (plus a $7,500 catch-up if you’re 50 or older) across all your 401(k) accounts.

One advantage of a Roth 401(k) is that there are no income limits on your ability to contribute. Suppose you don’t qualify for a Roth IRA, but your employer offers a Roth 401(k). In that case, you can contribute to the Roth 401(k) and still put money into a traditional IRA, depending on your income and if it works with your long-term retirement and tax strategy.

Can I put money in both my 401(k) and an IRA?

Depending on your income and whether or not your spouse also has a 401(k), you may max out both your 401(k) and IRA contributions in the same year. In other words, if you’re eligible (and can afford) to contribute $6,500 to your IRA and $22,500 to your 401(k), you may do so. But pay careful attention to the income/eligibility requirements:

For 2023, if you are single or head of household and also have a 401(k), you may contribute the full $6,500 (plus $1,000 in catch-up contributions, if applicable) to an IRA if your modified AGI is less than $73,000. Your contribution will be limited with an AGI between $73,000 and $83,000, and not allowed if your AGI is over $83,000.
If you are married filing jointly and only one spouse has a 401(k), you may contribute the full amount to your IRA if your AGI is under $218,000; the contribution is phased out with an AGI between $218,000 and $228,000.
If both you and your spouse have 401(k) plans, you can contribute the full $6,500 to an IRA only if your modified AGI is $116,000 or less. The contribution phases out with an AGI between $116,000 and $136,000.

How do rollovers impact contributions?

If you want to reduce the complexity of your finances or change jobs and take your retirement account with you, it’s possible to roll the money from one account to another.

A rollover won’t count toward your contribution limit. So, if you have $50,000 in a Roth 401(k) and want to move it to a Roth IRA, you can do so directly—and still contribute your annual max to the Roth IRA. Just pay attention to the tax treatment. Traditional accounts should be rolled over to traditional accounts, and Roth accounts should be rolled into Roth accounts.

401(k) rollovers: A step-by-step guide

Whether you’re rolling over an old 401(k) account to a new employer’s 401(k) or to an individual retirement account (IRA), it’s important to do it right. Learn the four steps to a successful rollover.

You can roll a traditional account into a Roth account, but you’ll have to pay taxes on a portion of the amount you move.

Multiple IRAs and RMDs

Each IRA account is considered separately when calculating required minimum distributions (RMDs). For example, if you have three traditional IRAs, you must perform three different RMD calculations. It’s possible to satisfy the total requirement from one account, though. You can add up the different amounts and withdraw the total from one IRA. There’s no need to take a separate RMD for each account. And, of course, you won’t include your Roth IRAs in your RMD calculations.

It’s a bit different for 401(k)s. You must calculate the RMD for each 401(k) account separately and then withdraw the required amount from each specific plan.

The bottom line

Although you are allowed to have multiple IRAs, it might not always make sense—unless you want to hold both Roth and traditional accounts for your tax strategy. Having several IRAs of the same type won’t increase the total amount you can contribute, but it might add complexity and fees. Additionally, it might make sense to roll your old 401(k) into an IRA when you change jobs, since you won’t be able to contribute to it anymore.

Review your situation and consider consulting with a professional as you consolidate your traditional accounts and your Roth accounts. With just two accounts to manage later, it might streamline your retirement income and reduce the chance that you’ll make mistakes with your RMDs.