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How To Learn 6 Advantages To Having Multiple IRAs

Are there any drawbacks to having multiple IRAs?

How Many Retirement Accounts Can I Have

There is no limit to how many individual retirement accounts, or IRAs, you can have. However, the amount you can contribute in a single year is limited.  There is no limit to how many retirement accounts you can have.  I will show you six advantages to having multiple IRAs.

how many iras can i have
advantages to having multiple IRAs

How Many Roth IRAs Can I Have?

How Many Individual Retirement Accounts (IRAs) Can You Have? How many IRAs can you haveHow many Roth IRA accounts do you want to have?  That’s how many you can have.  There is no limit to how many individual retirement accounts, or IRAs,  you can.  Whether they are multiple Roth IRAs or regular IRAs, it doesn’t … Continue reading

1. Investment Expertise

I have previously stated that consolidating was a good way to get more comprehensive advice.

What about the flip side of the coin?  What if you want specialized investment advice for parts of your IRAs? that is the first of the advantages to having multiple IRAs.

You may wish to open multiple IRAs so that you can have multiple accounts with different firms that specialize in different areas.

Perhaps you want a stock broker who actively traded stocks for one account. Or a specific industry, such as Real Estate?  What if you want a specific annuity, and only one firm offers it? 

2. FDIC, SIPC and Annuities?

Most people may not think about this, but after the market crash of 2008 and Bernie Madoff – it is something in the back of some people’s minds now.  Especially if you have very large IRA account balances and are very conservative tolerance for risk. With the market turmoil of 2022, people are starting to see this as one of the advantages to having multiple IRAs again.

The FDIC may insure your individual retirement account if it is maintained in a deposit account. SIPC insurance does not cover market price fluctuations in the value of shares. It does, however, safeguard you from any investments that go missing from your accounts if your firm fails. The dollar limits of these insurances are determined by the accounts and institutions you have.

advantages to having multiple IRAs
advantages to having multiple IRAs

3. Keep Accounts Separate If You might Work Past Age 72

That’s it – once you’ve rolled over all of your old 401ks and different types of IRAs into one IRA.  It’s in an individual retirement account, it can’t be rolled over into a 401k.  Why is that important?

Cliff Notes of RMDS – 

  • Roth IRA = No RMDs
  • IRAs = RMDs
  • Current Employer 401k – No RMDs

You may be allowed to roll all of your old 401ks into your current employer’s 401k, but only if you kept them separate. 

If you are over 72 and still working, you do not have to take RMDs from THAT 401k.

If the funds are in your IRA, and you’re over 72, you’re out of luck. 

Complete Guide To The SECURE Act & RMDs – Everything You Want to Know

Related Readings:

2022 SECURE Act & RMDs Required Minimum Distributions – Everything You Want to Know

The Secure Act was passed in December of 2019 and made some significant changes to the rules around retirement accounts, most notably around required minimum distributions (RMDs). Starting in 2020, the age for RMDs was increased from 70.5 to 72. This gives account holders an extra 1.5 years to let their account grow without having … Continue reading

 4. Estate Planning

Another of the advantages to having multiple IRAs is estate planning. When you open an IRA, you have the option of naming beneficiaries. The two sorts of beneficiaries that can be named are the primary beneficiary and the contingent beneficiary. These can be anyone the holder desires, such as a spouse, child, or other relative. 

Having a number of IRA accounts, each with its own beneficiary, may help simplify the estate planning process and minimize any potential disputes between various beneficiaries of a single account.

5. Specific investments to specific beneficiaries

It should be easier to designate beneficiaries.

The money in your IRAs normally goes to the beneficiaries you name when you pass away.  But what if you want specific holdings to go to specific people?

It may be difficult to leave specific investment options to certain family members when it comes to IRA beneficiary designations.

In some cases, it may be more practical to have separate IRAs, one for each asset you plan to leave to a beneficiary.

401k ira
advantages to having multiple IRAs

6. Charity

Giving money to charity is a lot easier with a separate IRA, and the final of the advantages to having multiple IRAs.  You can set up a single IRA with all of the money you want to gift to charities and then identify as many charities as beneficiaries as you’d like.

This separates the money you want to leave to your heirs from the money you want to give to charity. There should be no confusion if you set up a separate IRA for your charitable giving plans.


Consolidating your IRAs, 401ks, and other retirement plans have various advantages. Asset allocation, fees, withdrawals, taxes, paperwork, account questions, and asset transfers to beneficiaries are all easier to manage when retirement accounts are consolidated.

Aggregate IRA accounts

6 Reasons To Consolidate Your IRA Retirement Accounts

How Many IRAs Can I Have? You can have as many individual retirement accounts, or IRAs, as you choose. The amount you can contribute in a single year is, however, restricted. You can have an unlimited number of retirement accounts. Asset allocation, fees, withdrawals, taxes, paperwork, account questions, and asset transfers to beneficiaries are all … Continue reading

consolidate iras congregate

Should I Aggregate My RMDs

People frequently begin withdrawing money from their IRAs as soon as they retire in order to supplement their retirement income. If you don’t withdraw your RMDs by the deadlines, you will be charged a 50% penalty.  So it is critical that you understand the minimum distribution rules. For more – read my recent article about … Continue reading


How Will The 2022 SECURE ACT And RMDs Impact You?

The proposed regulations of the 2022 Secure Act and RMDs will restate the minimum distribution rules previously published in 2002, and amend them from time to time. They clarify SECURE Act changes and answer questions about RMD rules for lump-sum payments. Read on for more information about the proposed regulations. I’ll be keeping an eye … Continue reading

  • RMDs can be taken from a single account or from all of your IRAs.
  • RMDs are the total amount of required distributions that an individual must take from all of his or her IRAs during a tax year.
  • You’ll need to know the RMDs for each account if you’re drawing aggregate Required Minimum Distributions RMDs from an IRA.
  • A calculator or an online tool can be used to compute the RMD.

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Michael Ryan
Michael Ryanhttps://michaelryanmoney.com/
A former stockbroker, financial planner, and owner of my own financial planning practice and then a property & casualty agency. I have since retired and decided I want to help individuals and business owners by offering personal financial coaching. And now, I have started my blog - www.michaelryanmoney.com - to bring financial literacy to everyone. In a short time I have already been quoted and featured in US News & World Report, Business Insider, Yahoo Finance, and more (https://michaelryanmoney.com/home/press/) As a financial planner, I helped people from all walks of life. If you have questions about money, I will help you find the answers at www.MichaelRyanMoney.com
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