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Good Reasons to Consolidate your IRAs


Link to When Does a Roth Conversion Make Sense?


Good Reasons to Consolidate your IRAs.


Generally, merging together like-type IRAs, Traditional IRAs with Traditional IRAs or ROTH IRAs with ROTH IRA is a common practice to reduce the burden of tracking multiple accounts. It surely cuts down on the paperwork and accounting problems multiple accounts create.


Another reason to combine like-IRAs is to more easily execute an investment plan.


Also, sometimes accounts might be too small to invest to support your holistic strategy. But by combining it with another or others, it can get working in your favor. It some cases you can reduce the total amount of fees levied against your multiple accounts – who does not want to save on fees.


The last benefit I’ll mention is that when you ultimately must draw money from your Traditional IRA, and some special ROTH IRAs, the calculation, administration of the withdrawals can be cumbersome and prone to mistakes with multiple accounts. The penalty is 50% of the error amount not drawn – Ouch. In consultation with your advisor, generally combining account normally makes good sense. Make life simpler consider combining like-type IRAs.


This video and text is for information use only and is based on information believed to be true. Much of the information is readily available, but some is drawn from Advisor Products articles. The reader acts on these ideas at their discretion and should consider consulting an accountant, financial advisor, or attorney. No promise is made that an idea or concept is appropriate or would work well for the reader. This is not an offer to provide legal advice or act as an attorney. Contact Steven Erickson JD, MBA, CFP(R), Accredited Wealth Management Advisor, Chartered Retirement Planning Consultant at 573-874-3888 This email address is being protected from spambots. You need JavaScript enabled to view it. , if you have questions or to set an appointment. Serving Clients in Columbia, Jefferson City, and the surrounding counties.

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