Benefits of consolidating retirement accounts
The benefits of consolidating your IRAs include: No one wants to run out of money. Can I protect my hard-earned savings and still have the income I want?But without goals and a solid plan, how can you know for sure whether you’re on the right track? Rodgers & Associates answers questions like these every day.You may also choose to move those savings to an IRA.
As you approach retirement, it may make sense to consolidate all of your savings into one account to achieve a coordinated investment plan. To avoid facing potential penalties, you must contribute enough to your new retirement account to replace the 20-percent withholding.
You can simplify your finances and cut down on the record keeping if you consolidate all of your IRAs into a single account.
Consolidation can include that old 401(k), which you can probably rollover to an IRA, by placing a short phone call to the investment provider or by completing a form.
In addition to the other considerations mentioned in previous answers, I would look into the possible implications of Net Unrealized Appreciation (NUA) on anydecision to roll over a 401k.
NUA is a consideration when some of the investments in your 401k are stock in your employer's company.If it is simply for convenience, then you may be limiting some potential financial benefits now and in the future.