how many ira accounts can i have

How many IRA accounts can I have?

There are no limits to the number of IRA accounts you can have. However, there are contribution limits and restrictions that you must follow.

No, there are no limits to the number of individual retirement accounts (IRAs) you can open. However, there are limitations to how much you can contribute to these accounts.

The annual contribution limit is not per IRA, instead, it encompasses the maximum contribution to every account you establish. Because of this, it may not make sense to have more than one IRA or even multiple types of IRA investment options. 

Married couples have the option to maximize their contributions on two accounts, even if only one spouse is depositing money into them. These limitations are as follows: maximum of $12,000 for those under 50, $13,000 if one spouse is under the age of 50, or $14,000 if both are aged 50 or older. 

how many ira accounts can i have

What are IRA accounts?

An IRA is an investing strategy to help you save for retirement. The four types of IRAs include tradition, Roth, SIMPLE, and SEP IRAs. Opening an IRA is a great way to start retirement planning. They offer a variety of tax benefits, such as tax-deductible contributions and tax-free withdrawals. 

However, early withdrawals will have tax and other penalties. You must be aged 59 ½ or older before you withdraw funds from an IRA. There are some exemptions to this rule, but you must qualify for them to withdraw your money early. 

The benefits of IRAs 

There are a lot of ways to save for retirement, including mutual funds, bonds, stocks, and assets, however, IRAs are one of the best ways to start building up your retirement savings. They offer much more flexibility than things like a 401(k) or pensions. In addition, they may be able to be used for other things besides retirement and the tax savings are a great perk. 

Types of IRAs

The four most common types of IRAs are traditional, Roth, SEP, and SIMPLE.

Traditional IRAs

Traditional IRAs are a tax-deductible option for your contribution to the account. These may be able to reduce your taxable income by thousands if you contribute the maximum amount each year. However, when you withdraw your money at a later date, you will pay taxes on that money. 

You may begin withdrawing money from them at 59 ½. Depending on your birthday, you must take a required minimum distribution by the time you are 70 ½.

Roth IRAs

When you contribute to Roth IRAs, the funds are not tax-deductible. However, when you withdraw your money, you do not have to pay taxes on that money. These options are great for people that are a long way away from retirement. 


SEP IRA accounts are meant for those that own their own small business or are self-employed. They are similar to traditional IRAs, in that contributions to them are tax-deductible and will be tax-deferred until you withdraw the money at a later date. 

They require business owners to give a proportional contribution for eligible employees. SEP IRAs are only meant for business owners who have no or only a few employees. 


If you own a small business that has fewer than 100 employees, a SIMPLE IRA is for you. It stands for Savings Incentive Match Plan for Employees Individual Retirement Accounts.

Like most types of IRAs, they are tax-deductible and are only taxed once the funds are withdrawn. There are limits to how much an employee can contribute, but employer contributions are mandatory. 

Contribution limits

The government sets annual limits to how much you can contribute to IRA accounts each year. The numbers below encompass these limits for both 2021 and 2022. 

Current limitations depend on your age, with higher limits for those over the age of 50. Currently you can contribute up to $6,000 per year to an individual retirement account. Once you hit age 50, you gain the ability to contribute an additional $1,000 each year, making your maximum contribution $7,000 per year. 

Contributions must be made in cash – including checks – and can be divided among your different accounts if you have more than one. 

Limitations to Roth IRAs

Roth IRAs come with additional limitations including income limits. Meaning, if you earn over a certain amount, you are no longer eligible to contribute to a Roth IRA. 

Current income limits for single tax-filers are $140,000 – if you earn more than this annually, you cannot contribute to a Roth IRA. This number was raised to $144,000 for 2022. If you file jointly, this number goes up to $208,000 – $214,000 for 2022. 

In addition, they have a phase-out process once you start earning around those incomes. The phase-out range for single tax-filers in 2022 is between $129,000 – $144,000. For married couples filing jointly, the phase-out starts when you make $204,000 and your contributions will end once you reach $214,000.

When should you have multiple IRAs?

It makes sense to have multiple IRAs if you are opening them for their different features and advantages. It may make sense to have both a traditional and a Roth IRA for their different tax benefits – one is only taxed now and the other is only taxed when you withdraw the money. 

As you get older, your tax bracket will most likely be higher, making it economical to contribute to a Roth IRA now. If you are expecting to bring your taxable income down as you age, contributing to a traditional IRA will make more sense. 

In addition, many IRAs will charge an annual fee for general maintenance and management of the account.


Opening an individual retirement account is a great way to start saving for retirement. However, in most cases having more than one IRA account is just not necessary, unless you wish to use both tax benefits. Remember, there are limitations to how much you can contribute each year. If you’d like to explore how we can help, try Cambio today.

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