Have you created multiple IRAs/401(k)s for diversity? Not a bad idea if you have a large accumulation of retirement funds. But the average person needs to consolidate.
IRAs and 401(k)s are all tax sheltered accounts. You may combine 401(k)s into your IRA when you leave a company.
Fees on low balance accounts can affect your return. By consolidating your small IRAs into a larger account, you avoid these fees. You may receive cash incentives to open an account. (We offer “bonus” up to 10%. Restrictions apply.)
Ease of management. Do you receive multiple statements each year? By combining your separate accounts into one, you will have only one statement. At age 70 ½ you need to take your RMD from traditional IRA. If you have multiple accounts you need to figure the RMD for each account. Once you have done that, you may take the total amount from one or multiple accounts. If you miss one of your accounts in the calculation, you will have a 50% penalty on the amount you missed. Having combined your accounts, you only need one calculation and less chance of making a mistake!
What about your heirs? Things change and you may want to change your beneficiaries. Multiple accounts-multiple changes. One account-one change! And stream line your accounts for your heirs when the time comes. Life is complicated enough without complicated paperwork!
Not sure where to start or how to combine accounts? I can help you with the process!