Introduction – 

Are you looking for ways to maximize your retirement savings?  If so, you may want to consider opening multiple Roth IRAs.  A Roth IRA is a type of retirement account that allows you to make after-tax contributions which grow tax-free, as well having the additional advantage of not having RMDs (Required Minimum Distributions).  This can be a great way to save for retirement, especially if you are in a high tax bracket today.  For a detailed description of the Roth IRA, click here.

There are many benefits to having multiple Roth IRAs.  Here are a few:


Multiple Roth IRAs allow you to diversify your investments across different accounts, asset classes, and investment companies.  This can help reduce your risk and improve your chances of achieving your retirement goals.

Tax benefits:

You can contribute up to the annual contribution limit ($6,500, or $7,500 if you are older than 50 in 2023), in total, across all your Roth IRAs.  For example, if you have two Roth IRAs, you could make two $3,250 contributions to each separate Roth IRA.  These limits are dependent on your income.  For exact deals, follow this link to the


Roth IRAs offer a great deal of flexibility.  You can withdraw your contributions at any time without penalty if you are withdrawing the money to buy your first home, are adopting a child, or meet one of a list of other exceptions.  If you meet certain requirements, you can also withdraw your earnings tax-free, generally, if you withdraw from your principal amount, and not on interest earned.

Inheritance planning:

Multiple Roth IRAs can be used to simplify inheritance planning.  You can name different beneficiaries for each account, which can help ensure that your assets are distributed according to your wishes.  Unlike Traditional IRAs, Roth IRAs are allowed to have a balance upon your passing.

Invest in different asset classes:

You could open one Roth IRA for stocks, one for bonds, and one for real estate.  This would help you diversify your investments and reduce your risk.

Invest with different investment companies:

You could open one Roth IRA with a traditional brokerage firm, one with a robo-advisor, and one with a credit union.  This would give you access to a wider range of investment options.

Save for different goals:

You could open one Roth IRA for retirement savings, one for a down payment on a house, and one for your child’s education.  This would help you stay on track with your financial goals.


What are the limitations of multiple Roth IRAs?

There are a few limitations to opening multiple Roth IRAs.  Here are a few things to keep in mind:

Contribution limits:

The annual contribution limit for all IRAs is $6,500, or $7,500 if you are older than 50 in 2023.  This means that you cannot contribute more than $6,500 or $7,500 total across all of your Roth IRAs.

Tax implications:

If you withdraw earnings from a Roth IRA before age 59½, you may have to pay income taxes and a 10% early withdrawal penalty.

Account fees:

Some investment companies charge fees for Roth IRAs.  Be sure to compare fees before you open an account.


Opening multiple Roth IRAs can be a great way to maximize your retirement savings.  By considering your individual needs and goals, you can choose the right combination of accounts to help you reach your financial dreams.

Retire Happy!


Frequently Asked Questions – 

  • Can I open a Roth IRA if I am not working?

Yes, you can open a Roth IRA, even if you are not working.  You can contribute up to the annual contribution limit using earned income from previous years or converted traditional IRA money.

  • What is the best age to start a Roth IRA?

The best time to start a Roth IRA is as early as possible.  This will give your money more time to grow tax-free.  However, it is never too late to start saving for retirement.

  • How do I choose the right investment options for my Roth IRA?

The best investment options for your Roth IRA will depend on your individual risk tolerance and investment goals.  You should consider working with a financial advisor to help you choose the right investments.

I hope this post helps you, and as always – Retire Happy!


Here are three excellent choices to open a Roth IRA – 

Fidelity, Betterment and SoFi

Fidelity is one of the older and most well known of investment firms.  This New England firm offers 0% management fees and has been highly rated by both Nerdwallet and Investors Business Daily.

Fidelity logo

Betterment is a newer firm with a rating of 5 stars.  There is a $0 minimum for the Digital tier, and a $100,000 minimum for the Premium tier.  Their annual management fee is .25% for Digital, .4% for Premium and $4 per month for accounts under $20,000.

Betterment logo

SoFi Invest is rated 4.6 out of 5 by Businessinsider.  No account minimum and only requiring $1 to open an account.  SoFi has a BBB rating of A+.  They have multiple account options including their “Robo-Advisor” which uses AI-like systems to build and manage investment portfolios.

SoFi logo

Wells Fargo is also well reviewed investment and banking institution.  They have the advantage of having bricks-and-mortar offices across the country with many having investment advisors at the local branch.  For those that like to be face to face with an advisor, this may be a good choice.  Their management fees range from .25% to .35% and they have a $500 minimum to open an account.

Wells Fargo logo