Yes, you can have both accounts open at once, but there are strict limits on how much you can contribute across both combined

The IRS allows you to hold a Roth IRA and a Traditional IRA simultaneously. However, your total contributions to both accounts in a single year cannot exceed the annual contribution limit — which is $7,000 for 2024 if you are under 50, or $8,000 if you are 50 or older. This limit applies to the sum of contributions to all your IRAs, regardless of type or how many accounts you own.

The key difference is that contributions to a Traditional IRA may be tax-deductible in the year you make them (depending on your income and whether you have a workplace retirement plan), while Roth contributions are never deductible. When you file taxes, you report contributions to both account types on Form 1040 and Schedule 1. The IRS tracks your total across all IRAs you own, so you cannot contribute $7,000 to a Roth and another $7,000 to a Traditional in the same year.

Key Takeaways

  • Your combined contributions to all IRAs — Roth and Traditional together — cannot exceed $7,000 per year (or $8,000 if age 50 or older) in 2024.
  • You can split that limit however you want between the two account types, such as $4,000 to Roth and $3,000 to Traditional.
  • A Traditional IRA contribution may reduce your taxable income in the year you make it, while a Roth contribution does not.
  • If you have a workplace 401(k) or similar plan, your ability to deduct Traditional IRA contributions phases out at higher income levels.
  • Withdrawals from each account type follow different rules: Traditional IRAs have required withdrawals starting at age 73, while Roth IRAs do not.

How the contribution limit works when you own both accounts

Think of the $7,000 annual limit as a single bucket. You decide how to divide it. You might put $7,000 into a Roth and $0 into a Traditional. You might put $3,500 into each. You might put $2,000 into a Roth and $5,000 into a Traditional. The IRS does not care how you split it — only that the total does not exceed the limit.

This matters because many people open a Roth IRA first, contribute for a year or two, then later open a Traditional IRA. If you contributed $5,000 to your Roth in January and then open a Traditional IRA in June, you can only contribute $2,000 to the Traditional that same year. The $5,000 you already put into the Roth counts against your annual limit.

The contribution limit resets on January 1 each year. If you hit the limit in December, you start fresh in January with the full $7,000 (or $8,000) available to split between your accounts however you choose.

Tax deductions and income limits for Traditional IRA contributions

When you contribute to a Traditional IRA, you may be able to deduct that contribution from your taxable income in the year you make it — but only if you meet certain income thresholds. If you do not have a workplace retirement plan (such as a 401(k), 403(b), or pension), you can deduct your full Traditional IRA contribution regardless of income.

If you do have a workplace plan, the deduction phases out at higher incomes. For 2024, if you are single and covered by a workplace plan, the deduction begins to phase out at $77,000 of modified adjusted gross income and disappears entirely at $87,000. If you are married filing jointly and your spouse has a workplace plan, the phase-out range is $123,000 to $143,000. These ranges change each year.

Roth contributions are never deductible. You contribute with after-tax dollars. However, Roth IRAs have their own income limits for who can contribute at all — they are separate from the Traditional IRA deduction limits. If your income exceeds the Roth limit, you cannot contribute to a Roth that year, but you may still be able to contribute to a Traditional IRA (though the deduction may be limited).

Why someone might want both account types

Some people use both accounts as a tax strategy. If you earn too much to contribute to a Roth in a given year, you might contribute to a Traditional IRA instead. In other years when your income is lower, you might contribute to the Roth. This spreads your retirement savings across accounts with different tax treatment.

Others use both accounts to manage their tax bracket. If you expect your income to drop in a particular year — due to a job loss, sabbatical, or retirement — you might make a larger Traditional IRA contribution that year to reduce your taxable income when you are in a lower bracket. In higher-income years, you might contribute to a Roth instead, accepting the lack of a deduction in exchange for tax-free growth.

A third reason is flexibility in retirement. Traditional IRAs require you to begin taking withdrawals at age 73 (as of 2023; this age has been rising gradually). Roth IRAs have no required withdrawal age during your lifetime. If you have both, you have more control over which account to draw from and when.

Tracking contributions across multiple accounts

You are responsible for tracking your total contributions across all IRAs you own. If you have a Roth IRA at one bank and a Traditional IRA at another, the two institutions do not automatically communicate with each other. You must keep records of what you contributed to each account.

When you file your tax return, you report all IRA contributions on Form 1040 and Schedule 1. If you contributed to both a Roth and a Traditional IRA in the same year, you report both. The IRS uses this information to verify you did not exceed the annual limit. If you over-contribute — for example, by putting $8,000 into a Roth and $1,000 into a Traditional when the limit is $7,000 — you must withdraw the excess plus any earnings on it by the tax filing deadline, or you face a 6% penalty tax on the excess amount each year it remains in the account.

What happens at withdrawal time

The withdrawal rules for each account type remain separate, even if you own both. Money you withdraw from a Traditional IRA is generally taxed as ordinary income in the year you withdraw it. Money you withdraw from a Roth IRA is tax-free, provided the account has been open for at least five years and you meet one of the withdrawal conditions (age 59½, disability, death, or first-time home purchase up to $10,000).

If you have a Traditional IRA, you must begin taking required minimum distributions (RMDs) at age 73. The amount is calculated based on your age and the total balance of all your Traditional IRAs combined — not just one account. If you own two Traditional IRAs, you calculate the RMD using the combined balance, but you can withdraw the total from either account or split it between them.

Roth IRAs have no required minimum distribution requirement during your lifetime. This is one reason some people prefer to keep a Roth separate from a Traditional IRA: they want the flexibility to leave a Roth untouched and let it grow, while managing withdrawals from the Traditional account.

Frequently Asked Questions

Can I contribute $7,000 to a Roth and $7,000 to a Traditional in the same year?

No. Your combined contributions to all IRAs cannot exceed $7,000 per year (or $8,000 if age 50 or older). If you contribute $7,000 to a Roth, you cannot contribute anything to a Traditional that year. You must split the limit between the two account types.

What if I already contributed to a Traditional IRA and then want to open a Roth?

You can open a Roth at any time. However, your contribution to the Roth that year counts toward the same annual limit. If you contributed $5,000 to a Traditional IRA in March, you can only contribute $2,000 to a new Roth IRA that same year (assuming the $7,000 limit). The limit resets on January 1.

Do I have to take withdrawals from both accounts when I turn 73?

Required minimum distributions apply only to Traditional IRAs, not Roth IRAs. If you own both, you must take an RMD from your Traditional IRA(s) at age 73, but you have no requirement to withdraw from your Roth. You can leave a Roth untouched for as long as you live.

Can I have a Roth IRA and a Traditional IRA with the same bank?

Yes. Many banks and brokerages allow you to open both account types with them. Having both at the same institution can make it easier to track your combined contributions and manage the accounts, though you are still responsible for ensuring you do not exceed the annual limit.

If I convert a Traditional IRA to a Roth, does that count toward my annual contribution limit?

No. A conversion (moving money from a Traditional IRA to a Roth) does not count toward your $7,000 annual contribution limit. However, you must pay income tax on the amount converted in the year you convert it. Conversions are separate from regular contributions.