IRAs Versus 401(k)s--Which Is Better? 90 · You can open as many IRA accounts as you want; however, your total contributions cannot exceed the IRS limit ($3,000 for 2002) in any tax year. But be careful: Most financial institutions will charge you an annual maintenance fee if your account is below $10,000. And if you have too many accounts, you are talking a major record-keeping nightmare as you get older. One IRA at the right financial institution is all you need. This is where the similarities end. We will explain the differences as we take you through the maze of IRA rules. Understanding IRAs There are two general types of traditional IRAs, deductible and nondeductible. With the first, you get a tax deduction. In other words, you get to reduce your taxable income by the amount that you contribute. With a nondeductible IRA, you get no such deduction. In both types of IRAs, once the money is in your account and invested any income or gain on your investments is tax-deferred until you withdraw the money. Deductible IRA Two types of deductible IRAs exist: traditional and spousal. The following people qualify for a de- ductible traditional IRA in 2002: · Anyone who is not participating in a retirement plan--that is, a pension plan, a profit-sharing plan, a 401(k), a 403(b), or an ESOP. If you or your employer puts money into one of these accounts on your behalf, you're considered to be covered. · Single people who earn less than $44,000